McGANN v. ERNST & YOUNG

Nos. 95-55925.

102 F.3d 390 (1996)

Dollard McGANN; Barry A. Bragger; Peter Gershon; Steven G. Cooperman, M.D.; William S. Atherton; Irving Scher; Michael Patitucci, Jr.; J. Floyd Johnson; Schulman, Rogers, Gandal, Pordy & Becker, et al., Plaintiffs-Appellants, v. ERNST & YOUNG, Defendant-Appellee.

United States Court of Appeals, Ninth Circuit.

Decided September 9, 1996.

As Amended on Denial of Rehearing and Rehearing December 4, 1996.


Attorney(s) appearing for the Case

Leonard B. Simon, Milberg, Weiss, Bershad, Hynes & Lerach, San Diego, CA, for plaintiffs-appellants.

Miles N. Ruthberg, Latham & Watkins, Los Angeles, CA, for defendant-appellee.

Richard H. Walker, Securities and Exchange Commission, Washington, DC, for amicus curiae.

Before: FLETCHER and TASHIMA, Circuit Judges, and RESTANI, Judge, United States Court of International Trade.


As Amended on Denial of Rehearing and Rehearing En Banc December 4, 1996.*

FLETCHER, Circuit Judge:

Plaintiff securities investors appeal the grant of judgment on the pleadings for defendant Ernst & Young ("E&Y"), an independent accounting firm. Plaintiffs alleged that E&Y incurred primary liability under § 10(b) of the Securities Exchange Act of 1934 (the "Act") by preparing a fraudulent audit report that it knew...

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