In Imprimis Investors, LLC v. KPMG Peat Marwick, LLP, 69 Mass.
App. Ct. 218 (2007), the Appeals Court dealt for the first time with the
issue of whether an investor could “indirectly rely” on an
audit report in making its decision to invest in a company. Imprimis
Investors, LLC (”Imprimis”) claimed they relied on a final
signed audit report and an unqualified opinion prepared by KPMG Peat
Marwick, LLP (“KMPG”) when making their decision to invest in
First New England Dental Centers, Inc. (the “company”). They
also claimed the company’s financial statements, which were audited
by KPMG contained a number of specific and material misrepresentations and
omissions.
