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OFFICIAL COMMIT., UNSEC. v. PRICEWATERHOUSECOOPERS

No. 07-1397.

607 F.3d 346 (2010)

OFFICIAL COMMITTEE OF UNSECURED Creditors OF ALLEGHENY HEALTH, EDUCATION AND RESEARCH FOUNDATION, Appellant v. PRICEWATERHOUSECOOPERS, LLP.

United States Court of Appeals, Third Circuit.

Filed: May 28, 2010.

Attorney(s) appearing for the Case

Beth Heifetz, Esquire, Jones Day, Washington, DC, James M. Jones, Esquire, Jones Day, Pittsburgh, PA, Patrick F. McCartan, Esquire (Argued), Richard B. Whitney, Esquire, Jones Day, Cleveland, OH, for Appellant.

Joseph F. McDonough, Esquire, Manion, McDonough & Lucas, Pittsburgh, PA, Thomas G. Rafferty, Esquire (Argued), Antony L. Ryan, Esquire Cravath, Swaine & Moore, New York, NY, for Appellee.

Before: AMBRO, JORDAN, and MICHEL, Circuit Judges.

OPINION OF THE COURT

AMBRO, Circuit Judge.

We deal with a much-debated question of Pennsylvania law—if a third party (here, an auditor) colludes with agents to defraud their principal, do we impute to the principal the agents' misconduct and, if so, does that preclude recovery by another standing in the principal's place? With the benefit of a much-appreciated clarifying opinion from the Supreme Court of...

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