Special Situations Fund III QP, L.P. v. Deloitte Touche Tohmatsu CPA, Ltd.

ORDER

RAMOS, District Judge:

This case arises from allegations of an independent auditor’s alleged failure to detect fraud at ChinaCast Education Corporation, Inc. (“ChinaCast” or the “Company”), an educational services company in the People’s Republic of China (“China”). ChinaCast entered the U.S. capital markets through a reverse merger in 2006, and for several years, its common stock was traded on the NASDAQ. In 2012, the Company disclosed that, unbeknownst to its investors, and without consent from its Board of Directors, certain rogue employees, led by the Company’s former Chairman and…