Investment Firm Sues Ernst & Young Over Lehman Audits

Law360, New York (June 6, 2011, 4:14 PM EDT) -- The investment firm managed by former AIG CEO Maurice "Hank" Greenberg hit accounting giant Ernst & Young LLP with a lawsuit in New York on Thursday accusing the firm of helping Lehman Brothers Holdings Inc. hide tens of billions of dollars in fixed-income securities.

In its complaint, Starr International USA Investments LC claims Ernst & Young handed the collapsed investment bank clean audits year after year even though it knew Lehman used allegedly fraudulent transactions to make its risks appear lower than they actually were. Had...
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