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52m ago

BGH Rules Wirecard Shareholder Claims Are Subordinated in Insolvency

The ruling restores ordinary-creditor priority in Wirecard’s insolvency, leaving shareholder recoveries from the €650 million estate highly unlikely.

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Im Prozess um die Wirecard-Pleite sieht es für die Aktionäre schlecht aus, an ihr Geld zu kommen.
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Overview

  • The Federal Court of Justice overturned a 2024 OLG Munich interim ruling that had allowed shareholder damages to be registered as ordinary claims.
  • The judgment reinstates the Landgericht München decision rejecting Union Investment’s roughly €10 million pilot claim.
  • About 50,000 investors filed approximately €8.5 billion in alleged losses, within total claims of €15.4 billion against an estate of around €650 million.
  • The court reasoned that equity holders bear the company’s risk under the Insolvency Code, even in cases alleging fraud by the company.
  • Related proceedings continue, including the criminal trial of former CEO Markus Braun and separate investor actions against auditor EY.