Wirecard Shareholders Face Uphill Battle for Compensation in Landmark Case
Germany’s largest civil trial begins with procedural hurdles and uncertainty over EY's liability for alleged fraudulent audits.
Overview
- The Wirecard civil case, representing tens of thousands of shareholders, seeks up to €8.5 billion in damages from former executives and auditors Ernst & Young (EY).
- The Bayerisches Oberstes Landesgericht criticized the Landgericht München’s initial legal groundwork as vague, delaying substantive discussion of claims.
- Questions remain over whether EY's audit certifications qualify as capital market information, a key factor in determining legal liability under German law.
- EY denies wrongdoing and claims their audit reports do not meet the criteria for investor lawsuits under the Kapitalanleger-Musterverfahrensgesetz (KapMuG).
- The trial's outcome may take years, with a related Bundesgerichtshof ruling on EY's liability expected in February 2025.