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IN RE ALLOU DISTRIBUTORS, INC.

Bankruptcy No. 03-82321-ess. Adversary No. 04-8384-ess.

395 B.R. 246 (2008)

In re ALLOU DISTRIBUTORS, INC., et al., Debtors. Kenneth P. Silverman, as Chapter 7 Trustee of Allou Distributors, Inc., et al., and LaSalle Business Credit, LLC, Plaintiffs, v. KPMG LLP, Arthur Andersen LLP, and Mayer Rispler & Company, P.C., Defendants.

United States Bankruptcy Court, E.D. New York.

September 29, 2008.

Attorney(s) appearing for the Case

Anthony C. Acampora, Ronald J. Friedman, Jay S. Hellman, Silverman & Acampora LLP, Jericho, NY, for Chapter 7 Trustee.

Richard G. Haddad, Anthony M. Piccione, Erin E. Wietecha, Otterbourg, Steindler, Houston & Rosen, P.C., New York, NY, for LaSalle Business Credit, LLC.

Kevin A. Burke, Howrey LLP, New York, NY, for KPMG LLP.

Matthew I. Kliegman, Alan Raylesberg, Chadbourne & Parke LLP, New York, NY, for Arthur Andersen LLP.

Steven A. Coploff, Steinberg & Cavaliere, LLP, White Plains, NY, for Mayer Rispler & Company.

MEMORANDUM DECISION ON MOTIONS TO DISMISS THE THIRD AMENDED COMPLAINT

ELIZABETH S. STONG, Bankruptcy Judge.

Before the court are the motions (the "Motions to Dismiss") of defendants KPMG LLP ("KPMG"), Arthur Andersen LLP ("Andersen"), and Mayer Rispler & Company, P.C. ("Mayer Rispler") (collectively, the "Defendants") to dismiss with prejudice the third amended complaint dated June 30, 2006 (the "Third Amended Complaint" or "TAC"), filed by the plaintiffs...

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