Deloitte Escapes Suit Over Diagnostic Ventures' Collapse

Law360, Chicago (June 27, 2013, 7:33 PM EDT) -- Deloitte & Touche LLP prevailed in a Pennsylvania district court Thursday in a long-running securities fraud suit that accused the auditor of helping to deceive investors about the financial health of Diagnostic Ventures Inc. before it entered bankruptcy in 2003.

U.S. District Judge Legrome Davis granted summary judgment in favor of Deloitte and a former partner at the auditor, Harold Neas, finding that the plaintiffs — six institutional funds that purchased DVI bonds — offered little evidence linking their losses to statements by Deloitte that allegedly...
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