According to the docket, on January 17, 2002, the Court entered the Order dismissing the remaining claims with prejudice pursuant to the proposed order of voluntary dismissal filed by the plaintiff.
Earlier, on March 22, 2000, the Court entered the Opinion and Order denying the motion for class action certification. The Court further entered the Order granting the motion to dismiss the second amended complaint as to defendants Grant Thornton LLP and Doeren Mayhew & Co. The plaintiff filed a Notice of Appeal in response to U.S. District Judge George C. Steeh’s Orders. On August 16, 2000, the plaintiff voluntarily dismissed the cause of action against certain defendants. On September 13, 2000, the Court entered the Mandate from the Sixth Circuit Court of Appeal dismissing the appeal.
The Complaint charges the accounting firms of Grant Thorton and Doeren Mayhew & Co. failed to properly conduct audits of MCA; several securities broker-dealers failed to properly conduct due diligence of the various securities their registered representatives and/or agents sold to the general public; as well as several officers and directors of MCA committed securities fraud and breached their fiduciary duty to the investors of MCA. The Complaint further alleges that the Defendants conspired with the officers and directors of MCA to defraud the investors, which lead to the massive loses the investors have experienced. The Complaint also alleges that these activities fall under the Racketeer Influenced and Corrupt Organization Act (RICO), which if successful, authorizes treble damages.
The securities class action was commenced in Oakland County Circuit Court on June 28, 1999, and was removed to the United States District Court for the Eastern District of Michigan on July 21, 1999.