United States Ninth Circuit

Summary judgment in favor of defendant, the debtor's former outside auditor, on claims brought by plaintiff, a bankruptcy litigation trust, alleging defendant wrongfully issued unqualified audit opinions concealing misappropriations of the debtor's funds by the debtor's owners and controllers, is affirmed, where: 1) under Nevada’s "sole actor" rule, the misconduct of the owners and controllers must be imputed to the debtor; and 2) the district court properly granted summary judgment to the defendant on its affirmative defense that the debtor's claims had expired under Nevada law prior to the bankruptcy petition date.

Appellate Information

• Decided 02/18/2014
• Published 02/18/2014

Judges

• GARBIS

Court

• United States Ninth Circuit

Counsel