E&Y Unit Exits Suit Over Funds' Ponzi Investments

Law360, New York (October 7, 2011, 6:00 PM EDT) -- A California federal judge on Friday dismissed accounting firm Ernst & Young LLC from a proposed class action targeting hedge funds that invested customer funds in Ponzi schemes run by Thomas J. Petters and Bernard L. Madoff.

U.S. District Judge William Alsup said the plaintiffs had failed to properly serve Ernst & Young LLC, which is based in the Isle of Man, mistakenly filing its complaint with Ernst & Young LLP in New York. Though both firms are part of the Ernst & Young brand, they...
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