In the insolvency proceedings of the former Dax group, creditors and shareholders have registered billions in claims. EY’s auditors are also the target of criticism from angry investors.
In the Wirecard scandal, a test case is intended to clarify possible claims for damages by injured investors against the auditing company EY.
The decision of the Munich Regional Court I was published in the Federal Gazette on Wednesday. EY criticized the decision and is considering appeals. This was announced by a company spokesman in Stuttgart on request.
In the Wirecard insolvency proceedings, creditors and shareholders have filed claims totaling over 12 billion euros. Although the amounts involved in court are lower, if EY should one day be legally ordered to pay damages, it could be costly for the auditors. Model proceedings serve to bring about a decision on behalf of a large number of lawsuits. There is a separate law for this, the Investor Model Proceedings Act (KapMuG).
Over a thousand lawsuits against Markus Braun
In Munich alone, over a thousand lawsuits have now been filed against the former Wirecard CEO Markus Braun and EY in the Wirecard scandal – the auditors had audited the allegedly falsified balance sheets of the now broken-up group for years. The Munich Regional Court itself will not be responsible for the test case, but the Bavarian Supreme Regional Court.
EY has been the target of criticism from angry investors since Wirecard filed for bankruptcy in the summer of 2020 and admitted that 1.9 billion euros allegedly stored in trust accounts were allegedly bogus bookings. The money is still missing today.
The decision was preceded by almost two years of legal wrangling. Initially, there were discussions among the regional courts in Munich and Stuttgart as to who was responsible for the civil lawsuits against Braun and EY.
The hope of frustrated investors
After it was clarified that Munich is responsible, the Munich judges dismissed a whole series of lawsuits against EY until the Higher Regional Court of the Bavarian state capital criticized these decisions as too superficial. Since then, frustrated Wirecard investors have been hoping that EY will still be sentenced to pay damages.
EY argues that the attestations of Wirecard’s balance sheets were not capital market information within the meaning of the law. “For this reason, in our view, a procedure under the KapMuG is not applicable in the present case,” said a spokesman on request. “We consider the submission decision of the 3rd Chamber to be legally incorrect and are currently examining appeals.”
EY continues to assume that claims for damages are unfounded. “The auditor would only be liable in relation to investors in the event of intent,” said the company’s statement. «Our audit teams performed their audit procedures to the best of their knowledge and belief. The Higher Regional Court has already referred to the high hurdles for the existence of intent.”
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
