Ernst & Young has agreed to pay $99 million to former Lehman Brothers investors who have accused the auditor of helping Lehman misstate its financial records before the investment bank's collapse triggered a financial crisis in 2008, Reuters reported on Friday. The agreement, which must still get court approval, signals the end of a massive class action against Lehman's former directors, as well as several other financial institutions, according to a letter filed Wednesday in federal court in Manhattan. Lehman is accused of using the infamous "Repo 105" accounting practice to misleadingly understate its leverage to make itself appear more financially solvent. The investors who brought the lawsuit asked the court to suspend the case while the sides draft a settlement agreement.
