Ernst & Young Settles CBI Malpractice Suit

Law360, New York (September 2, 2010, 2:27 PM EDT) -- After successfully challenging a $27 million damages award against it, Ernst & Young LLP has brokered a settlement with creditors of CBI Holding Co. Inc., resolving an epic malpractice dispute over the auditor’s failure to detect massive fraud at CBI in the early 1990s.

On Monday, Judge Burton R. Lifland of the U.S. Bankruptcy Court for the Southern District of New York approved the settlement after CBI creditors chose to bury the hatchet rather than recalculate malpractice damages assessed to E&Y and endure a new trial...
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