Wirecard | Background
June 18, 2020:
- The auditor Ernst and Young GmbH (Ernst & Young) admits that the audit of Wirecard AG's financial statements did not provide sufficient audit evidence for the existence of approximately 1.9 billion euros. It turned out that the balance sheets had been manipulated.
- The disclosure of the discrepancies subsequently causes Wirecard shares to crash, resulting in a loss of around 99%. Numerous Wirecard investors suffer considerable losses.
- The public prosecutor's office launched an investigation into the matter.
June 25, 2020:
- Wirecard AG files for insolvency.
August 25, 2020:
- Munich Local Court opens insolvency proceedings. Investors can file insolvency claims.
09 December 2021:
- The Munich Higher Regional Court (OLG) refers a lawsuit against Ernst & Young back to the Munich I Regional Court, as Ernst & Young's misconduct should have been examined in more detail. The OLG Munich is of the opinion that claims for damages against Ernst & Young are more than possible.
What legal options do you have as a shareholder and bondholder?
Filing of claims in insolvency proceedings
On August 25, 2020, insolvency proceedings were opened against the assets of Wirecard AG. In the insolvency proceedings, the insolvency administrator has so far been busy processing the claims applications. The continuation of the first audit date is planned for April 2022.
It will still be possible to file a claim without any problems, as the filing deadline set for 26.10.2020 is not a cut-off date.
It can be assumed that there will be an insolvency estate that will be distributed among the Wirecard aggrieved parties. Against this background, it makes sense in many cases to at least file one's claims against the insolvency administrator, currently attorney Dr. Jaffé.
In any case, the application must be substantiated and it can be assumed that a large number of the applications already made did not comply with this requirement.
A legally secure claim filing can be made directly via RT & Partner. Expert substantiation can prevent the claim from being rejected by the insolvency administrator and secure your claims from the Wirecard AG insolvency proceedings.
The possibility of filing a claim exists for bondholders, holders of financial products and also for shareholders.
If your claim filing has been disputed, you are welcome to contact us.
Assertion of claims for damages
In particular, it is conceivable that damages could be claimed against Ernst & Young. Ernst & Young's auditors have audited Wirecard AG's annual financial statements since 2012 and issued unqualified audit opinions for years, even though there were indications of irregularities. There is even a possibility that Ernst & Young's audit opinions could be declared null and void.
In addition to the auditors, the former members of the Management Board and Supervisory Board of Wirecard AG may also be eligible to file claims for damages. In addition, claims against the German Federal Financial Supervisory Authority (BaFin) may also exist in principle.
INFORM YOURSELF ABOUT YOUR OPTIONS FOR ACTION
Schedule a free & no obligation initial consultation with one of our attorneys now.
During our no-obligation initial assessment, we will answer all your questions and review your options for action.
Can I file a claim with the insolvency administrator myself?
You do not have to be a lawyer to file a claim. However, if the claim is not substantiated in a comprehensible and plausible manner, there is a risk that it will be disputed by the insolvency administrator.
To minimize this risk, it is advisable to involve a lawyer. According to insolvency administrator Dr. Jaffé, many private claims do not meet this requirement.
What should I do if my self-filed claim was disputed?
If the insolvency administrator rejects a claim in whole or in part, you first have the opportunity to substantiate the claim, e.g. by submitting further evidence.
In the event of a final denial of the claim, an action for a declaratory judgment is conceivable.
In both cases, you play it safe by having legal counsel file the claim and, if necessary, enforce it in court.
WIRECARD INVESTORS STILL HAVE GOOD PROSPECTS OF RECOVERING DAMAGES - ESPECIALLY THROUGH A LAWSUIT AGAINST ERNST & YOUNG!
In December 2021, the 8th Civil Senate of the Munich Higher Regional Court issued an advisory opinion stating that, contrary to the opinion of the Regional Court before it, claims for damages against the auditing company EY may very well exist (Case No. 8 U 6063/21). The OLG objected to the fact that the Regional Court had examined claims against the auditor far too superficially and had refrained from obtaining an expert opinion.
The violation of audit obligations by EY is also made clear by the long "secret" so-called Wambach Report, which has now been published.
Can I file both a claim and a lawsuit against Ernst & Young?
Using both courses of action in parallel or successively is not mutually exclusive.
Who can claim damages against Ernst & Young?
Anyone who was or is in possession of Wirecard AG shares, financial products related to Wirecard AG or bonds. If you wish to take action against Ernst & Young, your transactions between July 2012 and June 18, 2020 will be taken into account.
Should I file a lawsuit directly against Wirecard AG?
After insolvency proceedings have been opened against the assets of Wirecard AG, it makes sense to file a claim, but it does not make sense to take legal action against the company, because there is "nothing left to collect" outside the insolvency proceedings.
Is Ernst & Young's liability not limited?
Even if Ernst & Young's liability towards Wirecard AG is limited, this does not apply to its liability in relation to the aggrieved investors.
Is the statute of limitations on damages claims threatening lawsuits against Ernst & Young?
Yes a statute of limitations looms on 12/31/2023. It pays to take action in a timely manner.