A federal appeals court has revived a lawsuit accusing Grant Thornton LLP of defrauding shareholders and bondholders of a broadband services company it had audited, and which went bankrupt during the telecom bubble a decade ago, Reuters reported yesterday. The U.S. Court of Appeals for the Second Circuit said that a lower court was wrong to dismiss claims that Grant Thornton deliberately ignored signs of fraud at Winstar Communications Inc., one of its largest clients, when vetting its financial statements for the 1999 fiscal year. Yesterday's decision reversed a September 2010 ruling by U.S. District Judge George Daniels in Manhattan. The case will return to the district court.
