On July 27th, the Southern District Court of New York ruled that purchasers of Lehman Brothers' debt and equity securities stated claims under the Securities Act and Securities and Exchange Act against Lehman Brothers, its former officers and directors, and its underwriters. In a thorough and methodical 106-page opinion, the Court held that plaintiffs' allegations that defendants made misleading statements and omissions concerning Lehman Brothers' risk management, liquidity risk, credit risk, asset valuations, and use of "Repo 105" accounting transactions, were actionable. In re Lehman Brothers Securities and ERISA Litigation. On July 28th, New York Times columnist Floyd Norris discussed the opinion's implications for auditors. Ernst & Young, Lehman Brothers' auditor, was also sued but unlike its co-defendants, had much of its motion to dismiss granted. Auditors.