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DDJ MANAGEMENT, LLC v. RHONE GROUP L.L.C.

60 A.D.3d 421 (2009)

875 N.Y.S.2d 17

DDJ MANAGEMENT, LLC, et al., Respondents, v. RHONE GROUP L.L.C. et al., Appellants, et al., Defendants. DDJ MANAGEMENT, LLC, et al., Appellants, v. RHONE GROUP L.L.C. et al., Defendants, and PRICEWATERHOUSECOOPERS, LLP, Respondent.

Appellate Division of the Supreme Court of the State of New York, First Department.

Decided March 5, 2009.

Plaintiffs are a group of investors that in March 2005 loaned $40 million to the now-defunct American Remanufacturers Holdings, Inc. (ARI). Defendant PwC performed an audit on ARI's 2003 financial statements, which was not certified as "unqualified" until 2005, and the remaining defendants are officers, owners, and shareholders of and entities related to ARI.

It is uncontested that a condition of plaintiffs' loan was that the PwC 2003 audit be "unqualified." However...

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