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Westchester may sue hospital auditors

In recent years county-owned Westchester Medical Center sank into an embarrassing fiscal and operational crisis, resulting in the need for costly and elaborate bailout plans. Now County Executive Andrew Spano is blaming, not the county's own mismanagement of the large hospital complex, but auditors KPMG Peat Marwick, for failing to warn of trouble; he's asked the county board to authorize a lawsuit that would demand $200 million. And per the Journal-News, the county board is hiring as a consultant, to evaluate the feasibility of such an action, none other than White Plains-based Lowey Dannenberg Bemporad Selinger & Cohen PC, known for its work on behalf of class-action plaintiffs; Lowey Dannenberg's best-known partner happens to be married to Democratic Congresswoman Nita Lowey, whose district includes most of Westchester. Board Chairman William Ryan, D-White Plains, said the Lowey firm had been chosen because of its experience in litigation against accountants. According to its website, the Lowey firm gets around on the New York government-representation scene: its recent triumphs include "Appointed Lead Counsel Representing NYC Pension Funds and Class in Juniper Networks Securities Case" and "Retained by NYS Common Retirement Fund and Appointed Lead Counsel in Bayer AG Securities Litigation".



Rafael Mangual
Project Manager,
Legal Policy

Katherine Lazarski
Manhattan Institute


Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.