Ernst & Young agrees $99m Lehman Brothers settlement

The Titanic

Ernst & Young agreed to pay investors $99m to settle litigation over its auditing of the bankrupt Lehman Brothers, according to a filing in federal court in Manhattan.

Bloomberg reports that the accord, disclosed by plaintiffs’ lawyers in a filing yesterday in federal court in Manhattan, would resolve claims of investors who bought certain securities issued by the firm from June 12, 2007, to September 15, 2008, the date Lehman filed for bankruptcy, according to the filing. It requires the approval of U.S. District Judge Lewis A. Kaplan.

'The proposed settlement is the result of more than three years of hard-fought litigation', that included more than 50 depositions and the review of 26m pages of documents, lawyers for the investors said in the filing.

Lehman filed for bankruptcy after losing 94% of its market value in the subprime mortgage crisis. Listing more than $613bn in debt, it was the biggest bankruptcy filing in history.

To access the complete Bloomberg article hit the link below:

Ernst & Young Settles Lehman Investor Suit for $99 Mln

Trader Messages Scrutinized as UBS Bans Chats Among Firms

Register for Financial Markets News Alerts