There is a controversy going on, on a lawsuit that demands the class status of the pensioner. This has been criticized by many authorities, and for the purpose of clarification the Alameda County Employees’ Retirement Association has gone to court. This association has demanded that the sate should confirm officially that a lawsuit will be taken against Lehman Brothers Holding Incorporation’s former auditor. The name is Ernst & Young LLP and is accused for the investment losses.
Approval of the retirement system is also there to support the person who have invested and eventually lost their investment due to the bankrupt common stocks of Lehman. This system is ready to lead the group in the lawsuit in court. Ernst & Young LLP is accused that he deceived the investors. According to the law, he had given them wrong information so that they ma lost their investments. This event happened before the bankruptcy of Lehman’s finances in 2008. This statement has been filed by the retirement association in the court on 3 February. On the other hand, the investors included the ex-Chief Executive Officer Richard Fuld and underwriters in their lawsuit and Ernst & Young LLP a defendant for the case two years ago. But then they have resolved their issues with many of the defendants. On the other hand, there was an insurance payment of $90 million for the agreement employed by ex-Chief Executive Officer Richard Fuld and some other officials of the Lehman Brothers but Ernst & Young was litigated continuously.
The spokesman of Ernst & Young is refusing to say anything in this matter yet. The audition firm has also taken a strong stance upon this and emphasized that their workings are done in accordance with a certain professional level. The event was also done according to the rules of then time. As a consequence the auditing firm is also going to file a lawsuit in the court and this will address the issue of the collapse of Lehman Brothers. This lawsuit will be handled by the Attorney General of New York.
There is some alteration going on within the lawsuit filed by Alameda County and other pension funds. This alteration is done in order to adjoin the verdict given in the 2,200 page statement that is published by the examiner Anton Valukus. This report is written on the issue of bankruptcy of the Lehmann Brothers. He said in this report that Lehman Brothers misused the Balance reports so that their authorities may be able to make the loan statements lighter than they actually were. It is essential to remember here that Lehmann itself was bankrupted in September 2008 and its total assets were then $639 billion. It has also stated that its authorities will be going to complete a few next years in order to prepare themselves too be able to pay the creditors at a rate of lower than 18 cents per dollar.