Allou Investors Lose Bid For Cert. In KPMG Suit

Law360, New York (October 6, 2009, 3:06 PM EDT) -- Deeming two proposed lead plaintiffs ill-suited for the task, a federal judge has rejected a request for class status for former shareholders of Allou Healthcare Inc. in a suit accusing auditors KPMG LLP and Arthur Andersen LLP of failing to unearth accounting fraud at the defunct pharmacy products provider.

Judge Joanna Seybert of the U.S. District Court for the Eastern District of New York on Wednesday denied the shareholders' motion for class certification, but offered the plaintiffs the opportunity to submit an amended request with alternative...
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