Court Tosses Fraud Suit Against Ernst & Young

Law360, New York (July 24, 2007, 12:00 AM EDT) -- Auditor Ernst & Young has prevailed in an appeal brought by shareholders of electronics company Applied Tactical Systems Inc., with a panel of Third Circuit judges affirming dismissal of securities fraud claims against it.

The appeals court, which published its opinion Monday after hearing arguments in January, agreed with a federal court's finding that the shareholders had presented insufficient evidence of loss causation to survive summary judgment.

The case, on appeal from the New Jersey district court, was brought in December 2001 by three ATS shareholders...
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