2nd Circ. Flips Grant Thornton Win In Winstar Audit Suit

Law360, New York (July 19, 2012, 4:20 PM EDT) -- The Second Circuit on Thursday overturned a quick win for Grant Thornton LLP in a securities fraud class action over its audit of bankrupt Winstar Communications Inc., saying a jury could reasonably determine that the auditor had acted recklessly.

The appeals court said the Southern District of New York had wrongly ruled that no genuine dispute existed as to whether Grant Thornton had acted intentionally or recklessly when it failed to see that telecommunications company Winstar was filing fraudulent financial documents.

There is, in fact, evidence...
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