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, WebCPA reported.
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.
