Cuomo Files Lawsuit Against Ernst & Young

WNYC News | Dec 21, 2010

New York attorney general Andrew Cuomo has filed a civil lawsuit against the accounting firm Ernst and Young.

Cuomo claims the firm helped the investment bank Lehman Brothers deceive investors by removing billions of dollars from its balance sheet. The state suit takes aim at Lehman's practice of temporarily moving liquid, fixed-income securities to European banks to make its financial statements look stronger.

The investment bank filed for Chapter 11 bankruptcy in September of 2008.

An Ernst & Young spokesman did not immediately return a call for comment Tuesday. The company declined to comment Monday when news of the impending lawsuit first surfaced.

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