2nd Circ. Nixes Investor's Suit Over E&Y Merger Fraud

Law360, New York (February 2, 2011, 6:59 PM EST) -- The Second Circuit has thrown out an appeal of a shareholder suit alleging auditing firm Ernst & Young LLP approved tainted financial statements related to Time Warner Inc.'s merger with AOL Inc., dismissing it as frivolous.

A three-judge panel in the U.S. Court of Appeals for the Second Circuit on Wednesday ruled that AOL investor Dominic Amorosa's claims for violations of the Securities Acts of 1933 and 1934 and his accompanying passel of state law claims did not stand up.

The district court correctly noted that...
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