Published online by Cambridge University Press: 09 April 2009
A λ-graph system is a labeled Bratteli diagram with shift transformation. It is a generalization of finite labeled graphs and presents a subshift. In Doc. Math. 7 (2002) 1–30, the author constructed a C*-algebra O£ associated with a λ-graph system £ from a graph theoretic view-point. If a λ-graph system comes from a finite labeled graph, the algebra becomes a Cuntz-Krieger algebra. In this paper, we prove that there is a bijective correspondence between the lattice of all saturated hereditary subsets of £ and the lattice of all ideals of the algebra O£, under a certain condition on £ called (II). As a result, the class of the C*-algebras associated with λ-graph systems under condition (II) is closed under quotients by its ideals.