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Ernst & Young’s Germany Branch Escapes Wirecard Fraud Lawsuit

Dec. 9, 2022, 8:15 PM

A German accounting firm affiliated with, but distinct from, Ernst & Young Global Ltd. won’t remain in a US investors’ suit over the collapse of Wirecard AG, a finance company that allegedly invented fictional escrow accounts worth €1.9 billion.

Ernst & Young GmbH Wirtschaftspruefungsgesellschaft lacks enough of a link to the US to be sued in federal court in Pennsylvania over its auditing of Wirecard, Judge Anita B. Brody said Thursday.

A procedure akin to a class action is proceeding in Munich against Ernst & Young LLP.

Investors Thanh Sam and Lawrence Gallagher allege they purchased American Depository Receipts and ...