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LATIGO VENTURES v. LAVENTHOL & HORWATH

No. 88-2821.

876 F.2d 1322 (1989)

LATIGO VENTURES, et al., Plaintiffs-Appellants, v. LAVENTHOL & HORWATH, Defendant-Appellee.

United States Court of Appeals, Seventh Circuit.

Decided June 8, 1989.

Attorney(s) appearing for the Case

Michael T. Hannafan, Hannafan & Associates, Chicago, Ill., Brian W. Ohm, Robert A. Minish, Hugh V. Plunkett, III, Robert C. Moilanen, Minneapolis, Minn., for plaintiffs-appellants.

Roger B. Harris, Mitchell Bryan, Allen P. Grunef, Altheimer & Gray, Chicago, Ill., Barry S. Augenbaun, Gen. Counsel, Philadelphia, Pa., for defendant-appellee.

Before CUMMINGS, POSNER, and FLAUM, Circuit Judges.

POSNER, Circuit Judge.

A group of disappointed investors, Latigo Ventures, appeals the dismissal of its fraud suit against Laventhol & Horwath, the accounting firm that audited Xonics, Inc. The plaintiffs had bought stock in Xonics, a publicly traded manufacturer of medical equipment, for more than $7 million in a private placement, and shortly afterward Xonics had declared bankruptcy. The suit charges Laventhol & Horwath with having violated the Securities...

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