Cuomo Sues Ernst & Young Over Lehman Audits

Law360, New York (December 20, 2010, 8:10 PM EST) -- New York Attorney General Andrew Cuomo hit accounting giant Ernst & Young LLP with a lawsuit Tuesday over its alleged role in the collapse of Lehman Brothers Holdings Inc., accusing the firm of helping Lehman secretly remove tens of billions of dollars of fixed-income securities from its balance sheet.

Cuomo's complaint, filed in the Supreme Court of the State of New York, New York County, asserts that Ernst & Young was fully aware of Lehman’s use of allegedly fraudulent transactions to make its risks appear lower...
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