Accounting Firm Had No Duty to Prepare W-2 Forms that Accurately Showed Income of Client's Employees

Employees sued their employer's accounting firm for issuing W-2 forms that over-stated the employees' income. This California Court held that CPAs did not owe a duty of care to client's employees, because there was no privity of contract between CPAs and client's employees, there are no allegations that CPAs generated the inflated numbers, or that CPAs were employed to verify that the accounting information was correct.
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I am a litigation lawyer, licensed to practice law in the State of California. You can reach me by phone at (310) 286-2000.