The practice agreed to pay the penalty in a settlement with the Attorney General of New York State. EY's was accused, as auditor, of approving an accounting treatment which kept billions of dollars of short-term financing off the balance sheet, thus hiding the true position of the investment bank before it went bankrupt in 2008. As auditor, it was accused of not protesting when Lehman allegedly misled analysts. It is also accused of not relaying the concerns of a whistleblower.
Cases closed
The firm said: 'After many years of costly litigation we are pleased to put this matter behind us, with no findings of wrongdoing by EY or any of its professionals.' The US Department of Justice has also been investigating other players in the Lehmans saga but, so far, without bringing any cases. Some potential cases have been closed down. Source: Financial Times
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