Ernst & Young LLP will pay $10 million to settle a regulatory investigation into allegations that it improperly obtained confidential information in pursuit of a contract to audit a public company’s books.
The Securities and Exchange Commission also fined four accountants allegedly involved in the misconduct: an Ernst & Young partner, two retired partners and a former chief accounting officer of the unnamed client company who shared the competitive information with them, according to the agency. The four accountants were all suspended from reviewing the financial statements of public companies for periods ranging from one to three years.
Ernst & Young and the four accountants agreed to settle the SEC’s claims without admitting or denying misconduct.
The SEC’s settlement order didn’t name the audit client. But William G. Stiehl, the former chief accounting officer, worked in that role for Sealed Air Corp.
SEE,
An expanded version of this report appears on WSJ.com.
Also popular on WSJ.com:
Succession drama grips Scholastic: CEO’s sudden death, an office romance and a surprise will.
Theranos patients: The emerging wild card in the trial of Elizabeth Holmes.