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PEGASUS FUND, INC. v. LARANETA

No. 77-3450.

617 F.2d 1335 (1980)

The PEGASUS FUND, INC., Vanderbilt Mutual Fund, Inc., and Pegasus Income & Capital Fund, Inc., Plaintiffs-Appellants, v. Ronald J. LARANETA et al., and Federated Investors, Inc., et al., Defendants, and Arthur Young & Company, Defendant-Appellee.

United States Court of Appeals, Ninth Circuit.

Rehearing Denied May 20, 1980.

Attorney(s) appearing for the Case

Arthur N. Greenberg, Greenberg & Glusker, Los Angeles, Cal., for plaintiffs-appellants.

Carl D. Liggio, Arthur Young & Co., New York City (argued), for defendant-appellee; Mitchell L. Lathrop, MacDonald, Halsted & Laybourne, Los Angeles, Cal., on brief.

Before SNEED and TANG, Circuit Judges, and JAMESON, District Judge.

SNEED, Circuit Judge:

The plaintiffs-appellants are three mutual funds that charge the defendant-appellee, an accounting firm, with recklessly performing an audit of the funds' financial statements in violation of section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78j(b), and rule 10b-5, 17 C.F.R. § 240.10b-5. This appeal is taken from summary judgment on pleadings that alleged only a rule 10b-5 violation, although a memorandum submitted in...

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