AEROSPACE
From Times Staff and Wire Reports
Accounting Firm Wins Thrift Case: An accounting firm cannot be held responsible for the collapse of Western Savings Assn., a federal judge has ruled. U.S. District Judge Barefoot Sanders dismissed a $560-million lawsuit filed by the Federal Deposit Insurance against Ernst & Young in connection with the 1986 failure of Western Savings, based in Dallas. The FDIC alleged that a predecessor of the accounting firm, Arthur Young & Co., should have uncovered problems in 1984 and 1985 audits. The collapse of Western Savings is expected to cost taxpayers more than $1 billion.
