Refco Auditor New Target In TH Lee's Spate Of Suits

Law360, New York (August 17, 2007, 12:00 AM EDT) -- Thomas H. Lee Partners LP dealt out another lawsuit Thursday in the wake of Refco Inc.'s collapse, this time suing Refco's former auditor Grant Thornton LLP for allegedly participating in the fraud that bankrupted the company.

The suit, filed in the New York Supreme Court, says the auditor lied to covered up Refco's bad debts, risks of fraud, inaccurate financial statements, related-party transactions and suspicious “reverse repo” transactions with third parties at the close of reporting periods—and in so doing led TH Lee to invest $452...
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