E&Y to pay 35 million dollars to Bain Capital in Lilliput Kidswear fraud case

Ernst & Young (E&Y) has been accused of providing shoddy advice to private equity major Bain Capital to invest in the Indian firm Lilliput Kidswear. Now it has to pay 35 million dollars (Rs 235 crores) to settle a Massachusetts lawsuit against it. The 2014 lawsuit alleged that EY’s auditing helped an accounting fraud and sought damages from the consulting giant. Bain Capital is said to have lost 60 million dollars (Rs 402 crores) in Lilliput in which it had acquired a 31 per cent stake in 2010.