Wirecard (English)
Update February 28, 2025:
On February 28, 2025, the BayObLG issued a partial decision in the model case, rejecting most of the declaratory objectives of the order issued by the Regional Court of Munich on March 14, 2022 as inadmissible.
In particular, the BayObLG ruled that the requirements for claims for damages against the auditor EY are not to be clarified in the model case proceeding. The court did not decide whether EY had breached its duties towards investors.
The partial model case decision is not yet legally binding and can be appealed to the Federal Court of Justice.
Update November 26, 2024:
On November 22, 2024, the first oral hearing in the model case action took place before the Higher Bavarian Regional Court (BayObLG). At the hearing, the court strongly criticized the order of the Munich Regional Court, which forms the basis for the model case, and considered the declaratory objectives formulated therein and submitted to the court to be largely inadmissible or too vague.
It is still unclear whether the model case against EY is even admissible. Unlike the Munich Higher Regional Court, the BayObLG has not yet decided whether the information contained in an audit opinion also constitutes a “capital market information” within the meaning of the applicable version of the Model Case Act.
The court will make a (partial) decision on 28.02.2025.
Update September 27, 2024:
The Higher Regional Court in Munich ruled on September 17, 2024 that shareholder claims rank equally to other creditor claims (Court Case No. 5 U 7318/22). The Higher Regional Court thus reversed the judgment of the Munich District Court. The appeal to the German Federal Court of Justice has been granted.
Update March 13, 2023:
The court today annonunced the lead plaintiff in the model case action against EY and Dr. Markus Braun. As soon as this is decision is published in a special public registry, within a period of 6 months other defrauded investors will be able to register their claims with the court. This registration has to be executed by a lawyer licensed in Germany.
For further information please contact: Rechtsanwalt Bernd Jochem (+49 89 64 98 45-0; jochem@rrlaw.de)
Update August 25, 2020:
The relevant Munich court yesterday officially opened the insolvency proceeding and appointed Michael Jaffé as the permanent administrator.
The court also has set October 26, 2020 as the deadline for the filing of claims in the proceeding and scheduled the first creditors’ meeting for November 18, 2020.
Update August 19, 2020
Our partner firm in Austria, the law firm of Aigner Lehner Zuschin + Partner, has filed the first lawsuit against the former Wirecard-CEO Markus Braun in Kitzbuehel/Austria.
Update June 25, 2020:
Today Wirecard’s management board has decided to file an application for the opening of insolvency proceedings due to impending insolvency and over-indebtedness.
We therefore will also seek to protect the interests of defrauded inverstors in this insolvency proceeding. Furthermore we will investigate claims against the auditors Ernst & Young and (ex-) board members personally.
June 19, 2020:
We are pursuing possible shareholder claims against Wirecard AG (ISIN DE0007472060) based on the failure to disclose information about an insufficient compliance system within the company and a potential manipulation of the balance sheet under Section 97 of the German Securities Trading Act and Section 826 of the German Civil Code.
On June 18, 2020 Wirecard acknowledged that the failure to complete an audit by June 19 may lead to the termination of 2 billion euros in loans, thus putting pressure on the available cash of the company. Shares plunged more than 60% due to the delayed publication of the annual financial results of the company when Wirecard revealed that auditors were unable to find about EUR 1.9 billion in cash in escrow accounts held at two Asian banks.
For further information please contact: Rechtsanwalt Klaus Rotter (+49 89 64 98 45-0; rotter@rrlaw.de); Rechtsanwalt Bernd Jochem (+49 89 64 98 45-0; jochem@rrlaw.de)