Hong Kong Accounting Firm in Second Circuit Appeal Victory
December 13, 2005
Cleary Gottlieb wins appeal in the United States Court of Appeals for the Second Circuit for BDO International and BDO Binder (trade names used by the Hong Kong accounting partnership of BDO McCabe Lo & Co.). On December 13, the Court unanimously affirmed the decision of Judge Deborah A. Batts of the United States District Court for the Southern District of New York to dismiss a securities fraud lawsuit against BDO International and BDO Binder.
In May 2000, Hong Kong investors Billy Yung and Yung Yau filed a lawsuit against BDO International and BDO Binder, among others, involving their private purchase of shares of Integrated Transportation Network Group, a taxicab business that operated in mainland China. BDO International and BDO Binder filed a motion to dismiss for lack of subject matter jurisdiction and on grounds of forum non conveniens. In September 2002, Judge Batts denied the motion to dismiss for lack of subject matter jurisdiction, but granted the motion to dismiss on grounds of forum non conveniens, and in May 2004, she entered a final order of dismissal. The Second Circuit affirmed this decision in all respects.