China Natural Gas Auditors Escape Shareholder Class Action
By Kathryn Brenzel
Law360, New York (September 25, 2013, 5:04 PM ET) -- A New York federal judge on Tuesday said that a shareholder class action against former auditors for bankrupt China Natural Gas Inc. failed to show that the firms ignored warning signs that the company hid $28 million in loans, but left the door open for plaintiffs to refile.
U.S. District Judge Jed Rakoff tossed the putative class action in March, but explained on Tuesday why he dismissed the suit without prejudice. The suit didn't adequately show that Frazer LLP and Friedman LLP, former accountants for CNG,...