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SCC slashes damages award against Deloitte, cuts scope of auditor’s liability in Livent case

Wednesday, December 20, 2017 @ 5:21 PM | By Cristin Schmitz

In a 4-3 decision on the liability of auditors for negligent misrepresentation, the Supreme Court has slashed from $85 million to $40.5 million (plus interest) the damages that Deloitte LLP must pay to the receiver of its former client, Livent Inc., for negligently auditing the now-insolvent Toronto live entertainment company that was bedevilled by fraud.

Justice Clément GasconOn Dec. 20, Justices Clément Gascon and Russell Brown on behalf of four judges partially allowed Deloitte’s appeal by reducing both the scope of the auditor’s liability and the...