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PATRICK ADAMS v ERNST & YOUNG Click to find out why . . .



Keywords & Phrases
CaseNo: PAVEY143726, CourtName: MA DC, Plaintiff: PATRICK ADAMS, UniqueCaseRef: LCD>PAVEY143726, State: MA Massachusetts, Ernst, Reasonable Diligence, Facts, Securities, Cir, Supp, Mass, Violation, Complaint, Common Law Fraud, Exercise, Statutes, Cert, Act, Limitations, Discovery, Bay Common Stock, Negligent Misrepresentation, Massachusetts, Inquiry Notice, Financial Statements, Federal Deposit Insurance, Coal Venture, Common Stock, Securities Litigation, River Hill, Diligence Requirement, Reside, Dismiss, Parties, District, Civil, Suit, Shapiro, Boston, Judge, Sheet, Motion, Young Hereby, Paper Products, Coun , ContentID: 120254000

Case Documents
1 1991-10-19 PLF MEM OPP DEF MTD
[ see first page and extracted highlights below  ] ItemID: 130771
44 pages
PDF
2 1991-09-23 MOTION TO DISMISS
[ see first page and extracted highlights below  ] ItemID: 130770
4 pages
PDF
3 1991-09-23 DEF MEM SUP OF MTN DISMIS
[ see first page and extracted highlights below  ] ItemID: 130769
28 pages
PDF
5 1991-07-11 CIVIL COVER SHEET
[ see first page and extracted highlights below  ] ItemID: 130767
5 pages
PDF
Total Documents: 5 documents , 188 pages
Price: $ 39.95


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1 . PLF MEM OPP DEF MTD

EXTRACTED KEY WORDS
PAPER PRODUCTS
OPINION
FREBERG
ROSPATCH
ATLANTIS GROUP
PLEADING
WORKPAPERS
SHOWING
CORPOMTION
ROSPATCE SECURITIES LITIGATION
ACCORDANCE
LXMITATIONS
RENEWED HOTIONS
ALAN FREBERG
PLATO PAPER PRODUCTS
PLAINTIFF
DISTRICT COURT
BUS SERVEII
HEREBY
MASS
REPRESENTATIVES
MARKET THEORY
FRAUD
HINDSIGHT
WORKING PAPERS
AUDIT
ERNST
                                      UNITED        STATES  DISTRICT               COURT           
                                                                                                   
                                         DISTRICT           OF  MASSACHUSETTS  I'...-  ; :,"-'  "i 
                                                                                             &,i  :
----------------------------------------x

PATRICK            ADAMS,  MOISE  KATZ  and                                          :
THOMAS  J.  HARGADON,  on  behalf                                   of                             
                                                                                                   
                                                                                                   
themselves                and  all            others        similarly                :          
situated,                                                                                       No.
                                                                                     ;
                                                          Plaintiffs,                . .
                                    -against-
                                                                                     :
ERNST  &  YOUNG,
                                                                                     :
                                                          Defendant.
                                                                                     :
----_---------------____I_______________                                             X





                             PLAINTIFFS'                 MEMORANDUM  IN  OPPOSITION
                                                  TO  ERNST  6  YOUNG'S
                                                  MOTION  TO  DISMISS


                                                                  UNITED  STATES  DISTRICT         
                                                                        DISTRICT             OF 

-d-d-           ---__-___-______c_c_l___l__________                                                

PATRICK  ADAMS,  MOISE  KATZ  and                                                                  
THOMAS  J.  HARGADON,  on  behalf                                                                 
themselves                                               and  all         others            
situated,                                                                                          
                                                                                                   
                                                                                        Plaintiffs,
                                                                                                   
                                                                 -against-                         
 ERNST  &  YOUNG,                                                                                  
                                                                                           



SNIPPETS:
  • ERNST & YOUNG,
  • workpapers.
  • IN 1989 (AND WERE LEARNED ONLY AFTER AUDIT
  • WORKING PAPERS WERE SECURED IN AUTUMN 1990)
  • in the pleading'."
  • hindsight.
  • THE FRAUD ON THE MARKET THEORY SATISFIES
  • representatives.
  • Mass.
  • HEREBY
  • bus SERVEII
  • DISTRICT COURT FOR THE WESTERN
  • ATLANTIS GROUP, INC.,
  • Plaintiff, -vs-ROSPATCH CORPORATION, et al.,
  • Defendants.
  • PLATO PAPER PRODUCTS, INC.,
  • ROSPATCH CORPORATION, et al.,
  • ALAN FREBERG,
  • ORDER ON RENEWED HOTIONS TO DISH188
  • BASED ON FEDERAL 6TATUTE OF LXMITATIONS
  • In accordance with the opinion issued this date,
  • IN RE ROSPATCE SECURITIES LITIGATION
  • -vs-PLATO PAPER PRODUCTS, INC.,
  • -vs-ROSPATCH CORPOMTION, et al.,
  • of showing the a,bscnce of an issue for trial.

  • 2 . MOTION TO DISMISS

    EXTRACTED KEY WORDS
    ERNST
    MOTION
    LAW
    YOUNG HEREBY
    ATTORNEY
    REQUEST
    COMPLAINT
    FRAUD CLAIM
    COMMON
    ALLEGES
    SECURITIES
    COURT
    DEFENDANT
    PURSUANT
    BOSTON
    LIBERTY SQUARE
    GLEN DEVALERIO
    CINCINNATI
    WAYNE
    RICHARD
    TROY
    STRAUSS
    YORK
    JONATHAN PLASSE
    POSTAGE PRE-PAID
    MAILING
    PARTIES
    FOREGOING MOTION
    HEREBY CERTIFY
    
    -.
    
    
    
    
    
                                                                                                       
                                             UNITED            STATES  DISTRICT  COURT                 
                                                DISTRICT              OF  MASSACHUSETTS                
                                                                                                       
    -------------------------------------------------------------------x                   .           
    PATRICK             ADAMS,  MOISE  KATZ  and                                           i           
    THOMAS  J.  HARGADON,                              on  behalf  of                      :
    themselves  and  all  others  similarly                                                .
    situated,                                                                              .         
                                                                                           . .
                                                    Plaintiffs,                            .
    
                                       -against-
    
    ERNST  &  YOUNG,                                                                      .
                                                    Defendant.                            . * . .
    
                                                           MOTION  TO  DISMISS
    
               Pursuant  to  Rule  12(b)(6)  of the  Federal  Rules  of Civil  Procedure,  defendant
    
    Ernst  &  Young  hereby  moves  this  Court  to  dismiss  all  claims  asserted  against  it
    
    in  plaintiffs'         complaint  with  prejudice.
    
    
               The  complaint                 asserts  one  claim  for  relief  under  federal  law 
    
    claims  under  state  law.                          Count  I  alleges  a  violation                
    
    Securities  Exchange  Act  of  i934,  15  U.S.C.  Q 78j(b);  count  III  alleges  a  common
    
    law       fraud           claim;          and  count                     IV     asserts           a
    
    misrepresentation                    claim.
    
    
               The  federal  securities  fraud  claim  asserted  in  count  I  should  be  dismissed
    
    under  Fed.  R.  Civ.  P.  12(b)(6)  because  it  is  time-barred  pursuant  to  the  applicable
    
    statute  of limitations                  for  actions  brought  under  Section  IO(b).  Upon 
    
    SNIPPETS:
  • Pursuant to Rule 12of the Federal Rules of Civil Procedure, defendant
  • Ernst & Young hereby moves this Court to dismiss all claims asserted against it
  • Securities Exchange Act of i934, 15 U.S.C. Q 78j; count III alleges a common
  • The federal securities fraud claim asserted in count I should be dismissed
  • the complaint fails to allege reliance as required by Massachusetts law and count
  • In support of its motion to dismiss, Ernst & Young relies on the complaint
  • REQUEST FOR ORAL ARGUMENT
  • I, Nancy D. Israel, attorney for defendant Ernst & Young, hereby certify
  • that I have this 20th day of September, 1991, served a copy of the foregoing Motion
  • Dismiss on all parties by mailing a copy, Federal Express, postage pre-paid, to the
  • Jonathan Plasse
  • New York, NY 10168
  • STRAUSS & TROY
  • Richard S. Wayne
  • Cincinnati, OH 45202
  • Glen DeValerio
  • Liberty Square Boston, MA 02109

  • 3 . DEF MEM SUP OF MTN DISMIS

    EXTRACTED KEY WORDS
    REASONABLE DILIGENCE
    FACTS
    SECURITIES
    CIR
    SUPP
    PLAINTIFFS
    MASS
    VIOLATION
    COMPLAINT
    COURT
    COMMON LAW FRAUD
    EXERCISE
    STATUTES
    CERT
    ACT
    LIMITATIONS
    DEFENDANTS
    DISCOVERY
    BAY COMMON STOCK
    NEGLIGENT MISREPRESENTATION
    INQUIRY NOTICE
    FINANCIAL STATEMENTS
    FEDERAL DEPOSIT INSURANCE
    COAL VENTURE
    MASSACHUSETTS
    COMMON STOCK
    SECURITIES LITIGATION
    RIVER HILL
    DILIGENCE REQUIREMENT
    
                                      UNITED        STATES  DISTRICT  COURT
                                        DISTRICT          OF  MASSACHUSETTS
    
    
    
    
    PATRICK         ADAMS,  MOISE  KATZ  and
    THOMAS  J.  HARGADON,                    on  behalf  of                    Civil  Action  No. 
    themselves  and  all  others
    similarly      situated,
                                                                         .
                                      3'  plaintiffs,
    
                        -against-
    
    ERNST  &  YOUNG,
    
                                          Defendant.                     :
    ---------------------------------------------------------------~
    
    
    
                                                OF  ERNST  &  YOUNG'S
                                                 MOTION  TO  DISMISS
    
    
    
                                                             ERNST  &  YOUNG
    
                                                             By  Its  Attorneys,
    
                                                             Nancy  D.  Israel  (#248000)
                                                             Associate  General  Counsel
                                                             Ernst  &  Young
                                                             200  Clarendon  Street
                                                             Boston,  Massachusetts  02116
                                                             (617) 266-2000
    
                                                             John  Matson
                                                             Deputy  General  Counsel
                                                             Ernst  &  Young
                                                             380  Madison  Avenue                      
                                                             New  York,  New  York  10017
    
                                                             Daniel  M.  Gray
                                                             Senior  Counsel
                                                             Ernst  &  Young
                                                             1200  19th  Street,  N.W.
                                                             Washington,  D.C.  20036
    
    SNIPPETS:
  • Knowledge Of A Violation Or Knowledge Of Facts Which
  • In The Exercise Of Reasonable Diligence Should Have
  • Against Ernst & Young At Least Twenty Months Prior
  • Barrett Associates, Inc. U. Aronson, 346 Mass.
  • General Waterworks Corp., 380 F.2d 860 (10th Cir.), cert.
  • General Builders Supply Co. v. River Hill Coal Venture,
  • Hurley v. Federal Deposit Insurance Corp., 719 F. Supp.
  • Securities Act of 1933 8 12,
  • Statutes of Limitations
  • plaintiffs seek damages from Ernst
  • securities and common law fraud and for negligent misrepresentation.
  • Their federal securities fraud claim is barred by the statute of limitations;
  • Massachusetts law requires in suits against accountants.
  • Plaintiffs' complaint is curious in that, although only Ernst & Young is
  • most of the allegations in this complaint are directed at the other "defendants,"
  • The 1987 and 1988 financial statements and Ernst & Young's reports on them are
  • fraud allegedly committed on the market for Bay's common stock.
  • have already been sued in In re: Bay Financial Corp. Securities Litigation, Civil Action
  • the alleged violation of section 10of the Securities Exchange Act
  • members of the class to purchase Bay common stock and subsequently to suffer
  • bars actions that are filed more than one year after discovery of the facts
  • that would indicate they exercised reasonable diligence in pursuing their claims.
  • did not incorporate an inquiry notice standard because it was not explicitly

  • 5 . CIVIL COVER SHEET

    EXTRACTED KEY WORDS
    DISTRICT
    PARTIES
    CIVIL
    SUIT
    SHAPIRO
    COURT
    JUDGE
    SHEET
    MASSACHUSETTS
    LITIGATION
    COUN
    DEF
    CITIZENSHIP
    BOSTON
    HABER
    GRACE
    ATTORNEYS
    LAND
    PLAINTIFF
    COUNTY
    ERNST
    THOMAS
    ADAMS
    PATRICK
    DEFENDANTS
    COW
    PARTIES RESIDING
    LOCAL RULE
    NATURE
    
           JS  44
           (i=Iev.  07/66)                                                                             
    L  COVER  SHEET
           The  JS44  civil  COW,  heft  and  the  information                                 
    r  wpplement                 the  filing  and  wrvicn            of  pleadings           0,  other 
    cept  as ptovidd                           by  l-j
           rulm  of  cows.  This  form,  WmrOd                               bv  the  Judicial        
    Mter  in  September             1674.  il  rquircd            for  the  ure  of  the  Clerk  of 
                                the  civil  doekct
           sheet.      ISEE  INSTRUCTIONS                     ON  THE  REVERSE                       
    
           I  (a)  PUWTIFFS
                                      DEFENDANTS
    Patrick                            Adams,                             Moise                    Katz
                                         Ernst                     &  Young
    J.  Hargadon,                                           Jon  behalf                                
    and  all                            others                            similarly
    
           (b)  COUNTY  OF  RESIDENCE                                         OF  FIRST  LISTED
                                     COUNTY           OF  RESIDENCE                      OF  FIRST 
                                                       (EXCEPT                 IN  U.S.  PlANTIFF      
                                                                                      (IN  U.S. 
    
                                     NOTE:          IN  LAND  CONDEMNATION                             
                      OF  THE
    
                                                    TRACT  OF  LAND                    INVOLVED
    
    
                      Arromwfs                    (FIRM      NAME,             ADDRESS.              
                                     ATTORNEYS              (IF  KNOWN)
    Ternas
                                    G .  Shapiro
    Shapiro                             Grace                            &  Haber
    75  State                                Street
    Boston,                            MA  02109
    (617)                         439-3939
    
                  III.  CITIZENSHIP                                   OF  PRINCIPAL                    
               lPUCE*Nx                  INONEBDX
    
                              (For  Diversity         Cases  Only)                                     
       *NO  CHE  Box  HIR  WEN-
      ~
    
                                                                        Pw            DEF
                                       PTF  DEF
    
                  Cltlzen           ot  This  state                     cl1           01               
    
    SNIPPETS:
  • CIVIL COVER SHEET The JS44 civil COW,
  • DEFENDANTS Patrick
  • Adams,
  • COUNTY OF RESIDENCE
  • NOTE: IN LAND CONDEMNATION
  • ATTORNEYS
  • Shapiro Shapiro
  • CITIZENSHIP
  • PTF DEF
  • Parties in Item Ill)
  • OF SUIT ma--- CE AN x IN ONE BOX ONLY)
  • Appellate Coun
  • JUDGE
  • DISTRICT COURT
  • et al. v. Ernst
  • NATURE OF SUIT CODE
  • Litigation,
  • IN THIS ACTION RESIDE IN THE CENTRAL
  • LOCAL RULE 8.
  • DO m OF THE PARTIES RESIDING IN MASSACHUSETTS
  • IN WHICH SECTION DOES THE PLAINTIFF
  • IN WHICH SECTION DO THE ONLY PARTIES RESIDING IN MASSACHUSETTS
  • Thomas G. Shapiro,
  • Shapiro Grace & Haber ADDRESS
  • Street, Boston, MA 02109 TELEPHONE NO.
  •    |