E&Y Exits IndyMac Investor Action Over Co.'s Collapse

Law360, Los Angeles (June 7, 2012, 10:08 PM EDT) -- A California federal judge on Wednesday dismissed former IndyMac Bancorp Inc. auditor Ernst & Young LLP from a securities class action accusing the accounting firm of concealing IndyMac's perilous financial condition from investors before its collapse.

U.S. District Judge George H. Wu said the lawsuit provides no witnesses attributing any particular wrongdoing to Ernst & Young and fails to show that the auditor had any particular knowledge of the alleged wrongdoing within IndyMac.

Judge Wu said, “In the end, the court would observe ... that, despite...
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