E&Y Settles Bluecoat Backdating Suit

Ernst & Young is the most recent firm to reach an accord to end litigation. The firm settled a so-called backdating lawsuit regarding work done for Blue Coat Systems, agreeing to pay $225,000 in cash to plaintiffs' counsels to compensate for attorneys' fees and expenses. Two lawsuits were filed alleging claims on behalf of the Blue Coat against the individual defendants, which included several of the company's current and former directors, officers and employees and E&Y, arising from or relating to the alleged backdating of stock options at the company between 1999 and 2006 and alleged insider trading in 2004.