Ernst & Young entered into a non-prosecution agreement that allows the firm to escape criminal prosecution for its participation in a tax shelter scheme in exchange for an agreement to pay $123 million, admission by the firm of the wrongful conduct of certain partners and employees and certain permanent restrictions and controls on its tax practice, including a prohibition against planning, promoting or recommending any tax shelter the IRS has determined to be a tax avoidance transaction.
The $13 million settlement covers class members who bought Broadcom stock between Feb. 14, 2006, and May 25, 2006.
The case took a long and winding legal road.
The Big Four firms broke the two-year “losing streak” related to the group's revenue growth rate.
The four largest accounting firms have an actual composite revenue growth rate for the group for FY11:
Ernst & Young reached an agreement with Medicis Pharmaceutical investors to settle a class-action lawsuit for $7 million.
The firm's end of the settlement is less than 40%.
Medicis Pharmaceutical/Scottsdale, Ariz. agreed to pay $11 million of the $18 million accord.
Ernst & Young appointed Maria Pinelli as the new Global Vice Chair for the Strategic Growth Markets practice.