8th Circ. Upholds Toss Of Accounting Firm Fraud Suit

Law360, New York (October 20, 2009, 7:07 PM EDT) -- A federal appeals court on Tuesday upheld the dismissal of a securities suit against accounting firm Moore Stephens Frost PLC, accused by shareholders of the now-defunct mortgage lender UCAP Inc. of deliberately falsifying audit reports.

The U.S. Court of Appeals for the Eight Circuit upheld a lower court's dismissal of the case against MSF, now known as Frost PLLC.

UCAP shareholders sued Frost in 2004, alleging that the accounting firm misled them with misrepresentations and false statements that ultimately caused millions in investor losses.

Frost was...
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