John Chiv: CliftonLarsenAllen was sued for alleged fraud and settled a lawsuit for $35 million

Mar 1, 2022

CliftonLarsenAllen was sued for alleged fraud and settled a lawsuit for $35 million

CliftonLarsonAllen is a national company. These are the lawsuits I found in a quick search. Not all the lawsuits are in California. This is the firm that the Humboldt County Board of Supervisors is paying to assist with an audit.

Does the County do any background check or research before they spend the public's hard earned money?

Earlier today in the BOS meeting, Fourth District Supervisor Virginia Bass asked, "We have had multiple audits; why havent these issues risen in the past? Why would be giving them a bigger contract if they are not looking hard enough?"

This is the firm whose contract Third District Supervisor Mike Wilson just wanted to rush through today despite the presentation of Humboldt County Auditor Controller Karen Paz Dominguez.

The Board of Supervisors approved the contract extension for CliftonLarsenAllen today.

Links to information used in this post:

The one case filed in California was a loss for CliftonLarsonAllen

Case dismissed against CliftonLarsonAllen

https://caselaw.findlaw.com/wa-court-of-appeals/1865239.html

"Is an auditor engagement agreement provision, which imposes a deadline for filing suit, against the auditor, within two years from the date of the last audit report, a reasonable and enforceable stipulation when the auditor's client had one year to file suit after it should have discovered any breach of duty by the auditor and any resulting damages? Plaintiff Enterprise and Progress in the Community (EPIC) appeals from a summary judgment dismissal of its suit against its former auditing firm, CliftonLarsonAllen LLP (CLA), for negligence and breach of contract. We hold the contractual provision to be reasonable under the circumstances and affirm the trial court's dismissal of the suit."

https://www.accountingtoday.com/news/cliftonlarsonallen-to-pay-35m-to-settle-city-lawsuit