October 3, 2022

Ernst & Young: Just Try and Come After Our Lehman Brothers Audit Fees

E&Y worked hard ignoring whistleblowers, goat poo assets, and cowering to unqualified CFOs to earn those fees from that Titantic of an engagement, so don't you think you can waltz into court and demand they give that money back.  

Ernst & Young, which was sued by New York in 2010 for allegedly helping Lehman Brothers hide its financial problems, said New York cannot go after the more than $150 million the auditor received from the defunct investment bank. […] "The overwhelming majority of those fees have nothing whatsoever to do with the allegations in the NYAG's complaint," Ernst & Young said in papers filed on Friday in U.S. District Court in Manhattan. The auditor is asking the court to dismiss the state's claim for recovery of the fees. Because Lehman paid the fees, New York cannot obtain them as restitution or damages for investors, Ernst & Young said in the court papers. Lehman itself, which was not the victim of fraud, is barred from recovering the money, and the law does not allow for the fees to be paid to the state, either, according to Ernst & Young.

 So suck it, Eric Schneiderman. That goes for you too, Andrew Cuomo. You'll see Jim Turley in hell before you reclaim those fees.

Ernst & Young says N.Y. can't go after Lehman fees [Reuters]

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