Justin McCarty is a co-leader of the firm's Professional Liability group and focuses his practice on defending accounting firms and their professionals, including non-US network firms facing litigation or regulatory investigations in the US. For nearly 10 years, Justin has represented accounting firms and their professionals in complex litigation in US federal and state courts and before arbitration panels and regulatory bodies. His work has included the representation of all four Big 4 firms, as well as numerous other firms.
Justin has represented accounting firms in connection with a variety of claims, including allegedly negligent or fraudulent audit work, allegedly deficient tax advice and allegedly negligent consulting work. These cases involved issues such as: the audit firm's obligations with respect to an audit client's internal controls, to whom an auditor owes a duty, auditor independence, alleged causal relationships between an auditor's work and alleged damages and professional qualifications to perform specific work. He currently represents an accounting firm in first-of-its-kind litigation by the Federal Deposit Insurance Corporation against an audit firm that provided outsourced internal audit services to a failed financial institution.
Further, he has represented accounting firms in a variety of federal securities and derivative suits filed by stockholders and other third parties. These cases focused on issues such as: subjective falsity, the pleading standards for negligence and fraud, securities tracing, loss causation and negative causation, substantive defense of audit work, expert witness qualifications and the demand requirement for derivative suits. Justin also has experience representing accounting firms in disputes with their former partners and network firms.
In addition to litigation experience, Justin has represented accounting firms and their professionals in investigations by the Securities and Exchange Commission, the Public Company Accounting Oversight Board and the Illinois Department of Financial and Professional Regulation. Justin’s representation of clients in these matters included negotiating with regulators, providing written submissions and representing clients in depositions or testimony.
Justin currently serves as a co-chair of the American Bar Association's Professional Services Liability Section.