On November 18, 2022, Justice Cohen issued a decision in Channel Fabrics, Inc. v. Skwiersky, Alpert & Bressler LLP, 2022 NY Slip Op. 33991(U), dismissing an accounting malpractice claims because, among other reasons, the plaintiff failed adequately to allege causation, explaining:
Further, Channel’s allegations of proximate cause are attenuated and speculative. Even if SAB had compared the accounts receivable, Channel can only theorize that SAB would have further determined the material reductions in accounts payable recorded by Channel by off-setting payable amounts due to Chinese vendors for monies collected by them directly from Channel(Internal quotations and citations omitted).
customers, leading SAB to determine that the corresponding reduction in Channel’s accounts receivable was not recorded by Channel, resulting in the accounts receivable being grossly overstated. This is precisely the type of speculation and conjecture that is insufficient to state a claim.