CalPERS announced on Monday a $12.75 million settlement with Ernst & Young, former auditor of Lehman Brothers Holdings Inc., stemming from a lawsuit filed by the $289.1 billion California Public Employees' Retirement System, Sacramento.
It is the latest in a series of settlements with defendants of a lawsuit the pension fund filed in U.S. District Court in San Francisco in February 2011 against former Lehman Brothers officers and directors, underwriters, and Ernst & Young.
The lawsuit had charged that the Lehman executives, along with 34 investment banks, had made false statements in offering documents for bonds issued from June 2007 to September 2008.
Previous settlements were $11 million with Lehman's officers and directors in October 2011, and with Cabrera Capital and Loop Capital Markets – two of the company's underwriters – for a total of $4.6 million in June and November 2013.
Lehman Brothers filed the largest bankruptcy in U.S. history in September 2008.
Joe DeAnda, CalPERS spokesman, could not be reached by press time; EY spokeswoman Amy Call Well did not return a phone call by press time.
