Finances - DSW sues Wirecard auditor EY for damages
The Deutsche Schutzvereinigung für Wertpapierbesitz(DSW) has filed a claim for damages against the auditor EY on behalf of more than 13,000 Wirecard investors. The lawsuit, which is 80,000 pages long with attachments, was filed with the Munich Regional Court on Friday, DSW announced in Düsseldorf on Friday. Institutional and private investors are demanding more than 700 million euros from EY. The costs of the lawsuit would be borne by British litigation financiers, who would receive part of the money claimed in the event of success.
The payment service provider Wirecard, which was listed on the DAX at the time, collapsed in 2020 after 1.9 billion euros allegedly held in escrow accounts could not be traced. A test case brought by aggrieved shareholders before the Bavarian Supreme Court is intended to clarify key issues and, with its ruling, provide guidance for further proceedings. The defendants include former Wirecard managers and the auditing firm EY, which had audited the balance sheets for years. Former CEO Markus Braun, who is accused of fraud, has been on trial in Munich for a year.
Read also:
- A clan member is punished here
- Traffic lawyer warns: Don't talk to the police!
- Will he be convicted as Jutta's murderer after 37 years?
- He also wanted to kill his cousin
- The German association for the protection of securities ownership in Munich is closely following the legal actions against EY, the auditor of Bank Wirecard.
- The Munich Regional Court is currently overseeing several processes related to Wirecard's financial mismanagement, including the claim for damages filed by DSW on behalf of the investors.
- According to local reports, DSW's lawsuits against Wirecard's auditors and former executives are part of a broader movement for accountability in Bavaria's banking sector.
- German authorities in Düsseldorf have cooperated with DSW in compiling evidence to support the Wirecard auditor EY's liability in this multi-million euro court case.
- Some German politicians have expressed concerns about the potential ripple effects on Germany's overall financial stability if Wirecard's cases result in significant damages awards against its financial institutions.
- Legal experts predict that if DSW and the Wirecard investors win their legal battle against EY, it could set a precedent in German and European finance law.
Source: www.stern.de
