The Delaware Court of Chancery has thrown out the bulk of claims leveled by the state insurance commissioner against two accounting firms and Wilmington Trust SP Services related to their alleged role in the insolvency of four captive insurance companies.
In a detailed, 96-page opinion examining whether a corporation can raise claims against third parties like auditors over corporate officer misconduct, Vice Chancellor Donald F. Parsons Jr. declined the commissioner’s request to adopt an “auditor exception” to the in pari delicto rule in Delaware.
