Texas Supreme Court
Grant Thornton LLP, Petitioner v. Prospect High Income Fund, Ml Cbo Iv (cayman), Ltd., Pamco Cayman, Ltd., and Pam…
July 2, 201053 Tex. Sup. Ct. J. 931
Summary
The Texas Supreme Court reversed in part the Court of Appeals judgment and entered judgment for Grant Thornton, holding that the Funds recover nothing because the auditor owed no duty to the prospective investor, the Funds lacked justifiable reliance, holder claims require direct communication, and the fraud, conspiracy and aiding‑and‑abetting theories fail.