Ernst & Young German Unit Dropped From Wirecard Fraud Suit Again

Ernst & Young Global Ltd.’s accounting affiliate in Germany escaped an investor lawsuit over the collapse of Wirecard AG, which focuses on the use of allegedly fictional escrow accounts.

Judge Anita Brody of the US District Court for the Eastern District of Pennsylvania on Monday tossed claims against Ernst & Young GmbH Wirtschaftspruefungsgesellschaft, which provided auditing services to before its collapse, citing a lack of personal jurisdiction.

The Ernst & Young affiliate generally conducts its business outside the US and Brody could not find that the company intentionally directed its activities at residents of the district.

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