McCabe v. Ernst & Young, LLP

OPINION OF THE COURT

SCIRICA, Chief Judge.

The principal issue in this securities fraud action against auditors Ernst & Young, LLP is whether plaintiffs presented sufficient evidence of loss causation to survive a summary judgment motion. We will affirm the grant of summary judgment.

I

A

Plaintiffs Daniel McCabe, Russell McCabe, and David Motovidlak (“the ATS Plaintiffs”) had been shareholders and officers of Applied Tactical Systems, Inc., a closely-held supply chain management company that was acquired by Vertex Interactive, Inc., a publicly-traded ¡supply chain management company. The Merger…