The U.S. Securities and Exchange Commission (“SEC”) announced on June 28, 2022 that it charged accounting firm Ernst & Young LLP (“E&Y”) for cheating on ethics tests and withholding evidence from the SEC’s Enforcement Division.
According to the SEC, E&Y admitted that a significant number of its auditors cheated on the ethics components of exams and other continuing education courses required to maintain Certified Public Accountant (“CPA”) licenses. E&Y also admitted that it made an incorrect submission to the Enforcement Division conveying that the firm had no current issues with cheating, and failed to correct it even after launching an internal investigation that confirmed the misconduct. In addition to a $100 million penalty, the SEC will require E&Y to retain “two separate independent consultants to help remediate its deficiencies.”
About Faruqi & Faruqi, LLP
Faruqi & Faruqi, LLP focuses on complex civil litigation, including securities, antitrust, wage and hour and consumer class actions as well as shareholder derivative and merger and transactional litigation. The firm is headquartered in New York, and maintains offices in California, Georgia and Pennsylvania.
Since its founding in 1995, Faruqi & Faruqi, LLP has served as lead or co-lead counsel in numerous high-profile cases which ultimately provided significant recoveries to investors, direct purchasers, consumers and employees.
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About Katherine M. Lenahan
Katherine M. Lenahan is a Partner in the New York office of Faruqi & Faruqi, LLP and focuses her practice on securities litigation.
Katherine M. Lenahan
Partner at Faruqi & Faruqi, LLP
New York office
Tel: (212) 983-9330
Fax: (212) 983-9331
E-mail: klenahan@faruqilaw.com
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