Stone & Rolls Ltd v. Moore Stephens

Stone & Rolls Ltd v. Moore Stephens (2009) is a UK case where Stone & Rolls, a company, sued their auditors, Moore Stephens, claiming negligence in their audit work. The court held that the auditors were not liable for the company's financial losses because there was no specific contractual duty to investors or third parties, only a duty to the company itself. This case clarified that auditors generally do not owe a duty of care directly to third parties relying on audited financial statements, emphasizing the importance of establishing a direct, foreseeable duty of care in negligence claims.