E&Y wins Caymans hedge fund row
US Supreme Court dismisses deficient audit accusations levelled at Ernst & Young's Cayman Islands division
The US Supreme Court has thrown out negligent audit claims made against Ernst
& Young in the wake of a hedge fund collapsing.
Liquidators sued the firm’s Cayman Islands unit, accusing E&Y of
performing a below-par audit of the Beacon Hill Master hedge fund after it lost
$300m (£151m), almost half of its net asset value,
In his ruling, Judge Charles Ramos said that the investment managers
effectively controlled every aspect of the fund’s operations and made material
misrepresentations to Ernst & Young.