Last spring, Medicis Pharmaceutical settled a lawsuit by paying $18 million in damages to both Ernst & Young and Medicis stockholders. The reason they had to pay damages to E&Y was because they made changes to their accounting for several years that inflated the value of their company & its stock.
http://www.pomerantzlaw.com/sites/default/files/doc/00023111.pdf
E&Y is being fined now because they were supposed to have caught and reported Medicis' accounting shenanigans. So, the misrepresentation of Medicis' value originated with Medicis.
http://www.pomerantzlaw.com/sites/default/files/doc/00023111.pdf
E&Y is being fined now because they were supposed to have caught and reported Medicis' accounting shenanigans. So, the misrepresentation of Medicis' value originated with Medicis.