EXECUTIVE SUMMARY
* Deepening insolvency is a relatively new end developing legal theory. Courts have disagreed about whether deepening insolvency is a stand-alone tort claim or simply a basis for seeking damages related to fraud, professional malpractice or another claim.
* If an auditor is alleged to have "missed" an accounting irregularity in an audit or the performance of other services, and eventually the company fails, a claim for deepening insolvency might be asserted.
* The core of the deepening insolvency theory is that an insolvent corporation and/or its creditors are harmed when a defendant fraudulently or negligently plays a role in increasing a ...