Lawyers for Ernst & Young did not immediately respond to a request for comment.
Ernst & Young is the last defendant still involved in the case. Bank of America Corp, Morgan Stanley and more than 30 other underwriters of Lehman debt reached a $417 million settlement in December 2011, while Lehman's former officers, including ex-Chief Executive Richard Fuld, settled for $90 million.
The case goes back to 2008, when Lehman's historic collapse served as a key catalyst to the global financial crisis.
Investors filed the lawsuit that year, accusing Lehman directors of painting a misleading picture of Lehman's health in financial statements and securities offerings. Ernst & Young and the underwriters contributed to the fraud by failing to investigate and ensure the truthfulness of the statements, the investors alleged.
Lehman ended its three-year Chapter 11 in 2011 with a liquidation plan slated to repay creditors about $65 billion, or an average of about 21 cents on the dollar for allowed claims.
The case is In re Lehman Brothers Equity/Debt Securities Litigation, U.S. District Court, Southern District of New York, No. 08-cv-05523.
Lehman's bankruptcy is In re Lehman Brothers Holdings Inc, U.S. Bankruptcy Court, Southern District of New York, No. 08-13555.
- Link this
- Share this
- Digg this
- Email
- Reprints
0 comments:
Post a Comment