The Rise of the Rogue Executive: How Good Companies Go Bad and How to Stop the Destruction

Appendix . Supreme Court Overturns Arthur Andersen Conviction

On a narrow technicality, in a unanimous decision, the U.S. Supreme Court overturned Arthur Andersen’s felony conviction of obstruction of justice, which had been upheld by the lower appeals court. The firm’s appeal hinged on the instructions given by the judge to the jury as they deliberated their verdict. The Supreme Court found that the judge’s instructions set the hurdle for a guilty verdict too low by failing to require proof that Andersen acted with the knowledge and intent to commit a crime. During the trial, the prosecution had presented evidence of intent, most notably David Duncan’s guilty plea to obstruction of justice. The judge’s instructions, however, were weakly worded ...