Opinion ID: 785790
Heading Depth: 4
Heading Rank: 1

Heading: Internal Control Deficiencies

Text: 89 Plaintiffs argue that Andersen turned a blind eye to numerous internal control deficiencies at Intrenet, which allowed accounting improprieties to continue unchecked. Yet, Plaintiffs offer no specific, highly suspicious facts and circumstances to support an inference that Andersen was aware of these deficiencies or recklessly disregarded them, other than the assertions that Andersen had access to Intrenet's confidential information and that the consultant quickly discovered the deficiencies. The allegations concerning the consultant are insufficiently specific to satisfy the PSLRA's requirements for pleading scienter. Nowhere does the Complaint allege facts identifying, for example, the consultant's level of access to Intrenet's financial records or how long the consultant took to reach conclusions. The Court would be remiss to infer Andersen's scienter based on the conclusory assertion that what the consultant ultimately found out, Andersen must have known or recklessly disregarded.