On Wednesday, the Sixth Circuit sent a securities fraud case back to the district court for the third time, after reversing the district court’s second dismissal of the complaint under Fed. R. Civ. P. 8, 9(b) and 12(b)(6). At issue in Frank v. Dana Corp., No. 09-4233 (6th Cir. May 25, 2011).pdf was the sufficiency of … Continue Reading
“In the end, plaintiffs’ allegations do not raise a strong inference that Ernst & Young acted with scienter in affirming Accredo’s allegedly fraudulent accounting. Conclusory allegations about what Ernst & Young must or should have known while auditing Accredo do not amount to specific allegations that show material misstatements or omissions committed with recklessness. Plaintiffs … Continue Reading
