The judge set this finding aside based on the doctrine of privity, which protects auditors from third party suits.

The new restrictions would reduce the cost of third-party suits by about half, state officials say.

People familiar with the negotiations said the plan would reduce the number of third-party suits by more than half.

He has proposed offsetting that by removing the liability they now hold in "third-party suits."

Aside from third-party suits, accountants are also growing more concerned about lawsuits from their clients.

In the most important case, known as Dole v. Dow, the state's highest court, the Court of Appeals, allowed so-called third-party suits against employers.

Mr. Spartis has filed third-party suits against Mr. Grubman, contending that Mr. Grubman's unceasing promotion of WorldCom shares had been responsible for many clients' losses.

Mr. Pataki had sought an overhaul that would have included eliminating third-party suits, under which a manufacturer of defective equipment who is required to pay damages to an injured worker can turn around and sue the worker's employer to collect part of those damages.

On the second anniversary of the Lockerbie disaster, a few days after Pan Am obtained leave to file its third-party suit against the US government, Steven Emerson aired an 'exclusive' on Cable News Network about the wave of speculation linking the DEA with the bombing of Flight 103.