Reves v. Ernst & Young

113 S.Ct. 1163 (1993).

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Nature of the Case

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Facts

Ernst & Young (D) valued a gasohol plant at $4.5 million, a figure used by a convicted accountant who used to help run the company. If the plant had been valued at market value, the Co-op would have been insolvent. D also failed to relate to the Co-op directors other information about the Co-op financial health. A run was experience on demand notes and Co-op filed for bankruptcy. The Trustee (P) sued D under RICO. The trial court ruled that D had insufficient participation in the operation to impose RICO liability. The court of appeals affirmed that ruling and P appealed.