UPDATE: If you have been a client of Ernst and Young over the past several years it is possible that the firm may have fraudulently represented the licensure status of its auditors. If so, you may have a claim against Ernst & Young for this fraud. You are urged to contact an attorney at Audet & Partners, LLP immediately for a free, confidential case evaluation.
Audet & Partners, LLP is currently investigating claims on behalf of Ernest & Young (EY) clients that the top accounting firm knowingly allowed its auditors to cheat on ethics exams required for CPA licensure. This unethical conduct may lead to an EY lawsuit, as the firm was recently fined $100 million by the U.S. Securities and Exchange Commission (SEC), which concluded that a “significant” number of EY auditors cheated on the ethics portion of their CPA exams. These exams are crucial for auditors to legally practice as certified public accountants (CPAs). As a result, the legitimacy of the licenses held by many EY auditors is now in question.
Due to this scandal, many clients are considering joining an EY lawsuit to hold the firm accountable for these fraudulent actions. Ernst & Young reported global earnings of $40 billion in June 2021, but this internal issue has cast a shadow over their reputation and practices.
The problem of ethics exam cheating first surfaced in June 2019 when a whistleblower alerted the SEC to the extent of the issue. However, Ernst & Young failed to fully disclose the ongoing nature of the problem, only referencing past incidents. This lack of transparency may become a central point in any future EY lawsuit brought by affected clients.
The $100 million fine is the largest penalty the SEC has ever imposed on an auditing firm, surpassing the $50 million fine levied on KPMG in 2019 for similar cheating allegations. Along with the financial penalty, EY has been ordered to remediate its ethical and procedural deficiencies by engaging independent consultants to monitor the firm’s practices. This ongoing scrutiny may provide further grounds for an EY lawsuit against the firm by its clients, who were impacted by the questionable licensure status of their auditors.
If you or your company has been affected by these actions, now is the time to explore whether you have a case in the EY lawsuit. Contact Audet & Partners, LLP today to protect your rights.
The law firm is no longer accepting clients in this case.
