Waslow v. Grant Thornton L.L.P. (In Re Greenberg)

OPINION

DIANE WEISS SIGMUND, Bankruptcy Judge.

Before the Court is Defendant Grant Thornton’s Motion to Dismiss Counts I-V of the Complaint (the “Motion”). Grant Thornton, a public accounting firm, provided accounting and auditing services to the Debtor, Jack Greenberg, Inc. (“Debtor”), from 1986 through 1994. During these years, Fred Greenberg (“Fred”), one of the Debtor’s principals, engaged in a course of conduct with regard to the Debtor’s business that resulted in an artificial inflation of the Debt- or’s gross profit. The Complaint contends that Fred’s fraudulent conduct went undetected…