ARTHUR YOUNG & CO. v. REVES

Nos. 87-1726, 87-1727, 88-1014, 87-1803 and 87-2533.

856 F.2d 52 (1988)

ARTHUR YOUNG & CO., Appellant, v. Bob REVES; Robert H. Gibbs; & Frances Graham, Appellees. Thomas E. ROBERTSON, Jr., As Trustee of the Farmer's Co-Op of Arkansas and Oklahoma, Inc., and as representative of a class of members, depositors, and equity security holders, who are similarly situated to him; Bob Reves; Frances Graham; Robert H. Gibbs, individually; Robert H. Gibbs, as natural guardian of his minor children, Thomas A. Gibbs and Robert H. Gibbs, Jr.; and Robert H. Gibbs, as Trustee of the Muskogee Internal Medicine Group Profit Sharing Funds, Appellants, v. ARTHUR YOUNG & CO., Appellee. Thomas E. ROBERTSON, Jr., etc., et al. v. Jack WHITE, et al. Robert R. CLOAR, Class Counsel, Appellant, v. Bob REVES, Appellee. Thomas E. ROBERTSON, Jr., As Trustee of the Farmer's Co-Op of Arkansas and Oklahoma, Inc., and as representatives of a class of members, depositors, and equity security holders, who are similarly situated to him, Appellees, v. ARTHUR YOUNG & CO., Appellant. Thomas E. ROBERTSON, Jr., etc., et al. v. Jack WHITE, et al. Thomas E. ROBERTSON, Jr., As Trustee of the Farmer's Co-Op of Arkansas and Oklahoma, Inc., and as representative of a class of members, depositors, and equity security holders, who are similarly situated to him; Bob Reves; Frances Graham; Robert H. Gibbs, individually; Robert H. Gibbs, as natural guardian of his minor children, Thomas A. Gibbs and Robert H. Gibbs, Jr.; and Robert H. Gibbs, as Trustee of the Muskogee Internal Medicine Group Profit Sharing Funds, Appellees, v. ARTHUR YOUNG & CO., Appellant.

United States Court of Appeals, Eighth Circuit.

Decided September 2, 1988.

Opinion of Denial of Rehearing and Rehearing December 2, 1988.


Attorney(s) appearing for the Case

John Matson, New York City, for appellant.

Robert R. Cloar, Ft. Smith, Ark., for Reves et al.

Gary M. Elden, Chicago, Ill., for appellee.

Before FAGG and MAGILL, Circuit Judges, and SNEED, Senior Circuit Judge.


Opinion of Denial of Rehearing and Rehearing En Banc December 2, 1988.

MAGILL, Circuit Judge.

This case arose out of the bankruptcy of the Farmer's Cooperative of Arkansas and Oklahoma, Inc. (Co-op). A class comprised of the holders of demand notes (Class) issued by the Co-op obtained a $6.1 million judgment against the Co-op's independent auditors, Arthur Young & Co. (Arthur Young).1

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