In Re Van Wagoner Funds, Inc. Securities Lit.

ORDER GRANTING ERNST & YOUNG’S MOTION TO DISMISS

Now before this court is the motion to dismiss the complaint of plaintiffs Stephanie and Richard Casolari (“Casolaris”) for failure to satisfy the heightened pleading requirements of the Private Securities Litigation Reform Act (“PSLRA”) and for failure to state a claim upon which relief can be granted under Federal Rule of Civil Procedure 12(b)(6). Having carefully reviewed the parties’ papers and considered their arguments and relevant legal authority, and good cause appearing, the Court hereby GRANTS Ernst and Young’s (“E fe Y”) motion to dismiss with leave to amend.

FACTUAL BACKGROUND

Van Wagoner Funds is an open-end management investment company. Van Wagoner Funds managed several mutual funds. The valuations of restricted securities held in some of these funds are at issue in this case. E & Y is an independent accountant that served as Van Wagoner Funds’ auditor and accountant throughout the class period of February 28, 2000 through August 21, 2001. (Amended Consolidated Complaint (“ACC”) ¶ 67.)

During the class period, E & Y conducted audit reports and certified year-end financial statements for Van Wagoner Funds’ 1999 and…