Federal Deposit Insurance v. Ernst & Young, LLP

MEMORANDUM OPINION AND ORDER

GETTLEMAN, District Judge.

Plaintiff Federal Deposit Insurance Corporation (the “FDIC”), in its corporate capacity, initiated the instant suit against defendant accounting firm Ernst and Young (“E & Y”), alleging fraud, gross negligence and accounting malpractice arising from defendant’s audit of a failed federal savings bank. E & Y moved to dismiss the complaint, or in the alternative, stay the action pending arbitration. After consideration of extensive briefing and oral argument, the court grants E & Y’s motion to dismiss.

FACTS

E & Y was the independent auditor of…