Goldberg v. Touche Ross & Co.
In this consolidated class action, Touche Ross & Co., as assignee of claims from the Goldberg action, moved for summary judgment against Theodor H. Kaufman, Benjamin Lieberman, and Jack Shapiro. The litigation originated from allegedly fraudulent financial statements issued by Giant Stores Corp. for fiscal years 1971 and 1972, which Touche Ross had certified as Giant's auditor. Shapiro, an officer and director of Giant, was previously convicted of fraud related to these statements. The court addressed Shapiro's arguments against Touche Ross's motion, including claims of impermissible indemnity and factual disputes regarding causation and damages. The court emphasized a strong public policy against indemnity in securities fraud cases and denied Touche Ross's motion, suggesting that contribution from nonsettling defendants might be an alternative remedy.