Grant Thornton Can't Duck Refco Trustee's Fraud Claims

Law360, New York (June 19, 2012, 4:21 PM EDT) -- Grant Thornton LLP should face allegations in multidistrict litigation that it helped Refco Inc. defraud investors by encouraging them to deposit money with the brokerage after it became insolvent, according to a ruling in New York federal court Sunday.

Special Master Daniel J. Capra recommended that a judge deny Grant Thornton’s March 2 motion to dismiss claims that its audit opinions induced foreign exchange customers to continue to make deposits with Refco after the company’s ill-fated $1.9 billion leveraged buyout by Thomas H. Lee Partners LP...
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Case Information

Case Title

In Re: Refco Securities Litigation


Case Number

1:07-md-01902

Court

New York Southern

Nature of Suit

Securities/Commodities

Judge

Jed S. Rakoff

Date Filed

December 28, 2007


Case Title

Kirschner v. Bennett et al


Case Number

1:07-cv-08165

Court

New York Southern

Nature of Suit

Fraud or Truth-In-Lending

Judge

Jed S. Rakoff

Date Filed

September 17, 2007

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