Grant Thornton Can't Ditch Claim Over Refco Audits

Law360, New York (March 29, 2012, 12:18 PM EDT) -- Grant Thornton LLP must face allegations it helped Refco Inc. defraud a family of hedge funds by giving the now-defunct brokerage a clean bill of health in audit opinions, a New York federal judge said Monday.

U.S. District Judge Jed S. Rakoff backed a special master’s Dec. 16 report refusing to dismiss part of a claim for aiding the fraud. The suit was brought by the liquidators for the Sphinx Ltd. funds, which were overseen by investment manager PlusFunds Group Inc. and allegedly lost $263 million...
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