Ernst & Young Settles With CalPERS Over Lehman Audit

Law360, New York (May 2, 2014, 3:45 PM EDT) -- 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...
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