Page "Ernst & Young" Paragraph 39

The Valukas Report by bankruptcy court examiner, Anton R. Valukas, issued on 11 March 2010, charged that Lehman Brothers engaged in a practice known as repo 105 and that Ernst & Young, Lehman's auditor, was aware of it.

New York prosecutors, headed by Governor-elect Andrew Cuomo, announced on 21 December 2010 that they have sued the firm for fraud charges related to repo 105 and the collapse of Lehman Brothers.

The firm said that its last audit of Lehman Brothers was for the fiscal year ending 30 November 2007 and that, Lehman ’ s financial statements were fairly presented in accordance with Generally Accepted Accounting Principles ( GAAP ).