Heller's creditors may sue accounting firm Ernst & Young for failing to raise red flags on its audit of the firm's 2007 financials, according to a bankruptcy liquidation plan and disclosure filed on Thursday. Financial irregularities derailed at least one merger for Heller, according to sources, and are being used by creditors to build a fraudulent-transfer case against former shareholders. The plan also shows that the defunct firm has settled with its hundreds of former employees for about $19 million.
Heller Creditors Target Accountants
October 12, 2009