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Judge dismisses Ernst & Young case

A judge for the Securities and Exchange Commission dismissed a case against Ernst & Young for alleged violations of auditor independence rules in its work for software company PeopleSoft. The SEC brought the case in May, alleging Ernst & Young compromised its independence as an auditor for PeopleSoft by entering an agreement to jointly develop and market software with the company, while vouching for its financial statements from 1994 to 2000. Ernst & Young made $150 million in 1998 and 1999 helping businesses install PeopleSoft products, according to regulators. The judge dismissed the case on Tuesday without prejudice because only one of three SEC commissioners had voted to bring the action, leaving the door open for the SEC to later reconsider the case.

A judge for the Securities and Exchange Commission dismissed a case against Ernst & Young for alleged violations of auditor independence rules in its work for software company PeopleSoft. The SEC brought the case in May, alleging Ernst & Young compromised its independence as an auditor for PeopleSoft by entering an agreement to jointly develop and market software with the company, while vouching for its financial statements from 1994 to 2000. Ernst & Young made $150 million in 1998 and 1999 helping businesses install PeopleSoft products, according to regulators.

The judge dismissed the case on Tuesday without prejudice because only one of three SEC commissioners had voted to bring the action, leaving the door open for the SEC to later reconsider the case.