Judge Remands NY's Suit Against E&Y Over Lehman Audits

Law360, New York (March 22, 2012, 11:09 PM EDT) -- A New York federal judge on Thursday remanded New York state’s suit against Ernst & Young LLP to state court, finding that its claims over the accounting giant’s alleged role in concealing tens of billions of Lehman Brothers Holdings Inc.’s securities don’t fall under federal laws.

U.S. District Judge Lewis A. Kaplan noted that the state’s suit against E&Y, which joined multidistrict litigation on federal securities cases linked to Lehman’s 2008 collapse, comprises three causes of action under New York state’s Martin Act, which governs fraudulent...
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