2nd Circ. Says Omnicare Kills Puda Investors' Auditor Claims

Law360, New York (May 20, 2016, 8:31 PM EDT) -- The Second Circuit affirmed a win for Moore Stephens Hong Kong on Friday in an investor suit claiming the accounting firm negligently overlooked fraud by a Puda Coal executive, saying the Supreme Court's recent Omnicare decision undermines the investors' Securities Act claims.

The three-judge panel upheld a ruling dismissing shareholders' claims under Section 11 of the Securities Act of 1933 — which creates civil liability for false information in securities registration statements — because the Supreme Court's ruling last year in Omnicare Inc. et al. v. Laborers District raised the bar, the court said.

Omnicare held that statements of opinion, rather...

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