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BANK OF AMERICA, N.A. v. KNIGHT

No. 12-2698.

725 F.3d 815 (2013)

BANK OF AMERICA, N.A., Plaintiff-Appellant, v. James A. KNIGHT, et al., Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

Decided August 8, 2013.

Attorney(s) appearing for the Case

Theresa L. Davis , Michael L. Molinaro , Reed Smith LLP, Chicago, IL, Erik W. Chalut , Blair R. Zanzig , Loeb & Loeb LLP, Chicago, IL, for Plaintiff-Appellant.

Carrie Ellen Davenport , Shaw Gussis Fishman Glantz Wolfson & Towbin LLC, Peter D. Sullivan , Stephen R. Swofford , Hinshaw & Culbertson, Robert M. Chemers , Richard M. Waris , Pretzel & Stouffer, Thomas F. Falkenberg , Christina D. Harrison , Williams Montgomery & John Ltd, Chicago, IL, for Defendants-Appellees.

Before EASTERBROOK, Chief Judge, and BAUER and KANNE, Circuit Judges.

EASTERBROOK, Chief Judge.

Bank of America lost about $34 million when Knight Industries, Knight Quartz Flooring, and Knight-Celotex (collectively Knight) went bankrupt. It contends in this suit under the diversity jurisdiction that Knight's directors and managers looted the firm and that its accountants failed to detect the defalcations. The parties agree that Illinois law supplies the rule of decision. The district court dismissed all of the Bank's claims on the...

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