E&Y, KPMG Exit Suit Over Insurers' Madoff Investments

Law360, New York (May 31, 2011, 9:11 PM EDT) -- A New York federal judge on Friday dismissed auditors Ernst & Young LLP and KPMG LLP from a putative securities class action arising from Argus Group Holdings Ltd. and Tremont International Insurance Ltd.'s investments with fraudster Bernard L. Madoff.

The plaintiffs — investors in the Rye group of feeder funds to Bernard L. Madoff Investment Securities LLC — said the auditors failed to notice red flags in their due diligence investigations of BLMIS and brought claims of fraud, breach of fiduciary duty, aiding and abetting a...
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