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CRT INVESTMENTS, LIMITED v. BDO SEIDMAN, LLP

5305, 5306, 601052/09.

85 A.D.3d 470 (2011)

925 N.Y.S.2d 439

2011 NY Slip Op 4816

CRT INVESTMENTS, LIMITED, et al., Appellants, v. BDO SEIDMAN, LLP, et al., Respondents, et al., Defendants.

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

Decided June 9, 2011.

This litigation arises out of plaintiffs' investment in the Ascot Fund, Limited, a Cayman Islands hedge fund audited by BDO Tortuga, which was a "feeder fund" for Ascot Partners, L.P., a New York hedge fund audited by BDO Seidman. Plaintiffs asserted causes of action for fraud, aiding and abetting fraud, negligence, and gross negligence against these outside auditors for failing to disclose that the fund was ultimately managed by...

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