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Examiner’s Report on Lehman Brothers (Valukas)

Report of 11 March 2010 by the bankruptcy court’s examiner, Anton Valukas, on the causes of Lehman Brothers’ failure.

2 links, 1 backed by primary records

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Dates
11 Mar 2010
The debate

What it found

The Examiner further concludes that a colorable claim of professional malpractice exists against Ernst & Young.1

Who disputes it

  • Ernst & Young LLP 25 Mar 2010

    Our opinion stated that Lehman's financial statements for 2007 were fairly presented in accordance with U.S. GAAP, and we remain of that view2

    EY’s last audit of Lehman was for the year ended 30 November 2007; it reviewed but did not audit the interim periods of fiscal 2008.

Each side is quoted in its own words. Whether a finding holds is not decided here.

Connections 2

part of

finding disputed by

Timeline 2 dates
  1. 11 Mar 2010 Examiner’s Report on Lehman Brothers (Valukas)
  2. 25 Mar 2010 Ernst & Young LLP disputes a finding of Examiner’s Report on Lehman Brothers (Valukas) According to Ernst & Young LLP
Proof 2 sources
  1. Lehman Brothers Holdings Inc. Chapter 11 Proceedings Examiner's Report (Anton R. Valukas), Vols 1, 3, 5, Examiner, U.S. Bankruptcy Court S.D.N.Y. (official site jenner.com/lehman returned 404 to curl; copies from Stanford mirror), 11 Mar 2010. Primary record
    The Examiner further concludes that a colorable claim of professional malpractice exists against Ernst & Young.
    Lehman’s auditors, Ernst & Young, were aware of but did not question Lehman’s use and nondisclosure of the Repo 105 accounting transactions.
    Colorable claims exist that Ernst & Young did not meet professional standards, both in investigating Lee’s allegations and in connection with its audit and review of Lehman’s financial statements.
    The Examiner concludes that there is sufficient basis for claims to be submitted to a trier of fact
  2. Ernst & Young Defends Lehman Audits, Accounting Today, 25 Mar 2010. Scholarship & press
    Our opinion stated that Lehman's financial statements for 2007 were fairly presented in accordance with U.S. GAAP, and we remain of that view
    It was not caused by accounting issues or disclosure issues.
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