Northwest Pipe Can't Sink Accounting Fraud Suit

Law360, New York (August 29, 2011, 1:23 PM EDT) -- A federal judge in Washington on Friday refused to dismiss a putative class action alleging that Northwest Pipe Co. and two of its former heads carried out a massive accounting fraud that cost investors tens of millions of dollars.

U.S. District Judge Ronald Leighton found that the consolidated complaint adequately alleged that the pipe manufacturer, its former CEO Brian Dunham and former Chief Financial Officer Stephanie Welty falsified company earnings, prompting investigations into its bookkeeping and a plunge in the company's stock value.

The plaintiffs overcame...
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