AHM Creditors Hit Deloitte With $75M Negligence Suit

Law360, New York (June 14, 2010, 6:32 PM EDT) -- The creditors committee for American Home Mortgage Holdings Inc. has lodged a $75 million adversary complaint against Deloitte & Touche LLP, saying the accounting firm failed to audit with professional care and in accordance with professional standards in the months leading up to the subprime mortgage lender's bankruptcy.

The suit, filed Friday in the U.S. Bankruptcy Court for the District of Delaware, brought three claims for relief, alleging professional negligence/ malpractice, negligent misrepresentation and breach of contract. It is trying to recover at least $75 million...
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