Mosier v. Stonefield Josephson, Inc.

(United States Ninth Circuit) – In a tort action brought by a court-appointed receiver against defendant accountants who audited the financial statements of PEMGroup, whose former directors and managers defrauded $950 million from investors, the district court’s grant of summary judgment to defendants is affirmed where the receiver failed to raise a genuine issues as to causation by failing to show that the involved companies or its investors relied on the audits at issue.