Magistrate Takes KPMG, PwC Off Hook In Collins Suit

Law360, New York (January 20, 2010, 5:41 PM EST) -- A magistrate judge has recommended tossing surviving negligence and breach of contract claims against defunct auto parts maker Collins & Aikman Corp.’s auditors in a suit accusing executives of sinking the company through a series of ill-advised acquisitions.

In a report released Tuesday in the U.S. District Court for the District of Delaware, Magistrate Judge Leonard P. Stark said claims against the auditors, PricewaterhouseCoopers LLP and KPMG LLP, were barred by the doctrine of in pari delicto.

The allegations survived Judge Stark's previous recommendation to dismiss,...
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