Mayer Brown, Auditors Dismissed From Refco Suit

Law360, New York (August 26, 2009, 6:51 PM EDT) -- Former Refco Inc. auditors Grant Thornton LLP and Ernst & Young LLP and outside counsel Mayer Brown LLP are off the hook in a lawsuit brought by the trustee overseeing Refco’s bankruptcy proceedings that accused them of turning a blind eye to the massive fraud scheme at Refco.

Judge Gerard Lynch of the U.S. District Court for the Southern District of New York granted the professional defendants’ motions to dismiss on Tuesday, but will allow the trustee to replead.

The professional defendants must have actual knowledge...
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