- Jurisdiction
- California
I'm a partner in an accounting firm and a client, after 20 years, is suing us for malpractice.
They're claiming that we misappropriated funds for the last 20 years (incorrect) as well as filing incorrect payroll tax returns (all returns were filed correctly and on time) and they're demanding $3 million dollars or they will pursue legal action.
We don't have malpractice insurance (stupid, I know, it's not my decision).
Aside from waiting for them to instigate legal proceedings and us having a lawyer, what else can we do? How likely is this to actually lead to anything substantial? Do they have an actual case?
They're claiming that we misappropriated funds for the last 20 years (incorrect) as well as filing incorrect payroll tax returns (all returns were filed correctly and on time) and they're demanding $3 million dollars or they will pursue legal action.
We don't have malpractice insurance (stupid, I know, it's not my decision).
Aside from waiting for them to instigate legal proceedings and us having a lawyer, what else can we do? How likely is this to actually lead to anything substantial? Do they have an actual case?