Stanley Parzen focuses on complex litigation in federal and state courts and in arbitration, including trials and appeals. He devotes the majority of his practice to the defense of accounting firms and other professionals.
Stanley has represented accounting firms in connection with a wide variety of claims brought by clients and client successors, including trustees and liquidators, including claims relating to allegedly faulty audit work, often relating to failed banks, savings associations, or insurance companies; allegedly faulty computer systems design; and allegedly improper tax advice and tax return preparation. A variety of issues has arisen in these cases, including the auditor’s obligation with respect to alleged internal controls at an audit client, whether the knowledge and actions of the client’s officers and directors and shareholders should be attributed to the client, whether the deepening insolvency theory is an appropriate theory or measure of damages, accounting for subprime loans and securitizations, and whether the actions of the accountant had any causal relationship to the damages sought in the case.
In addition, he has provided representation to accounting firms in numerous federal securities and derivative actions brought by stockholders in diverse federal and state courts as well as other claims brought by third parties. A variety of issues has arisen in these cases including the propriety of the use of the fraud on the market theory, whether the plaintiffs had ever pleaded a claim for fraud under the applicable pleading standards, and whether the demand requirement for a derivative case to be filed had been satisfied. He has also represented a number of accounting firms in disputes with partners and retired partners, primarily relating to covenants not to compete and retirement benefits. Stanley has also represented international associations of member firms in dispute with former member firms.
Stanley has also represented accounting firms and a coordinating entity in matters before various federal and state regulatory bodies. Among other such work, he has represented clients in investigations conducted by the SEC, the PCAOB, the FDIC and the Comptroller of the Currency. He has also represented a number of firms before various state boards of accountancy.
Prior to joining Mayer Brown, he served as a Law Clerk to The Honorable Harrison L. Winter, US Court of Appeals for the Fourth Circuit, Maryland (1976-1977).