Shareholders of a company that went bankrupt after a fraud by some officers can sue its accounting firm on charges it failed to detect the fraud, New Jersey's Supreme Court ruled this week.

The 5 to 2 decision is a setback for KPMG, which had won a trial court dismissal of the original lawsuit by shareholders of the failed Physician Computer Network. PCN, of Morris Plains, N.J., developed and marketed software to help doctors communicate with hospitals, insurers and laboratories.

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