Auditors Can't Shake $50M Suit Over Alleged Fraud Miss

Law360, New York (October 19, 2011, 5:37 PM EDT) -- A California judge refused Wednesday to dismiss Paron Capital Management LLC's $50 million suit accusing its ex-accounting firm of failing to properly vet a corrupt potential business partner with whom the hedge fund ultimately teamed up, costing it millions in damages.

Following 45 minutes of oral argument, Judge Harold E. Kahn issued an order overruling Rothstein Kass & Co. PC's demurrer to the second amended complaint, saying neither the doctrine of in pari delicto nor the economic loss rule bars the plaintiffs' claims at this point...
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