10th Circ. Affirms Grant Thornton Win In IMergent Suit

Law360, New York (January 20, 2011, 6:39 PM EST) -- The Tenth Circuit on Thursday upheld a win for accounting firm Grant Thornton LLP in a class action that accused its auditors of costing investors millions by approving incorrect iMergent Inc. financial statements.

Shoddy accounting does not in itself violate securities laws, a three-judge panel of the U.S. Court of Appeals for the Tenth Circuit said.

iMergent's stock prices tumbled in 2005 after an earnings restatement showed that the e-services provider had overstated its income for several years.

The company sold software licenses on an installment...
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