Ernst & Young Settles With CalPERS Over Lehman Audit
By Max Stendahl
Law360, New York (May 2, 2014, 3:45 PM ET) -- Ernst & Young LLP, the former auditor for Lehman Brothers Holdings Inc., has agreed to settle claims by California Public Employees’ Retirement System, which purchased more than $700 million in Lehman bonds before the investment bank collapsed in 2008, according to a Thursday court filing.
CalPERS, the largest public employee retirement system in the U.S., said it had reached a pact with Ernst & Young over allegations that the auditor helped Lehman conceal its precarious financial condition prior to its September 2008 bankruptcy. The exact terms...