Deloitte Touche Tohmatsu CPA (DTTC) on Monday defeated claims that it defrauded ChinaCast Education Corporation investors by failing to detect alleged fraud at the Shanghai-based company.
In a 63-page ruling, U.S. District Judge Edgardo Ramos in Manhattan dismissed a securities fraud case brought against DTTC by a coalition of U.S. hedge funds that bought a combined 20 million shares of ChinaCast common stock. The judge ruled that the plaintiffs couldn’t back up their claims that DTTC missed red flags that former ChinaCast CEO Ron Chan raided the company of its assets.
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