McLAUGHLIN, Circuit Judge.
This is a diversity case in which the plaintiff sued as subrogee of J. H. Brooks & Company, a New York brokerage house. The defendants are accountants and were requested by Brooks & Company to make an audit of its books in 1936 and again in 1939. It was alleged that under practically the same circumstances in both audits the defendants failed to discover and report the theft of certain securities by one Storay, an employee of Brooks...
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