Class Cert. Bid Nixed In Case Against BDO Seidman

Law360, New York (August 4, 2009, 8:11 PM EDT) -- A federal judge has rejected a bid for class certification from a group of plaintiffs that sued BDO Seidman LLP claiming that the auditing and accounting firm ignored red flags in subprime lender American Business Financial Services Inc.'s financial statements.

Judge Thomas N. O’Neill Jr. of the U.S. District Court for the Eastern District of Pennsylvania signed off on a memorandum and order denying the plaintiff noteholders’ motion for class certification on Monday.

The plaintiffs claim they depended on the reliability of BDO’s opinions that ABSF’s...
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