Ernst & Young Said to Face Fraud Suit Over Lehman
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Ernst & Young LLP will be sued for fraud by New York Attorney General Andrew Cuomo for allegedly helping Lehman Brothers Holdings Inc. mislead investors, according to a person familiar with the matter.
The suit will focus on audits and quarterly reviews of Lehman financial statements by Ernst & Young, which helped downplay the firm’s liabilities, said to the person, who wasn’t authorized to speak publicly about the case. The suit will charge violations of New York’s securities fraud statute, the Martin Act, said the person.