The Globe and Mail reports in its Tuesday edition that the receiver for Bridging Finance is suing Ernst & Young LLP for failing to catch signs of fraud being perpetrated at the failed lender, despite serving as its auditor for several years. The Globe's Jameson Berkow writes that Bridging receiver PwC is seeking $1.4-billion in damages from EY for breach of contract, negligence and negligent misrepresentation, according to a statement of claim filed with the Ontario Superior Court on June 11. Between 2014 and 2018, EY issued a total of 20 unqualified audit reports for Bridging and several of its funds. Unqualified audit reports are also known as clean reports, meaning any major issues discovered during the auditing process were resolved. "Had EY carried out its audits to the standard required of it, it would never have issued the unqualified audit reports and, consequently, the losses [Bridging] and its funds suffered would have been avoided," the PwC statement of claim said. David and Natasha Sharpe, senior executives of Bridging until the company was placed in receivership in 2021, were found guilty of fraud by the Ontario Capital Markets Tribunal in October, 2024, alongside another executive, Andrew Mushore.