Wirecard AG Shareholder Action against Ernst & Young GmbH
This is a shareholder action for shareholders of Wirecard AG (Wirecard), to be led by international law firm Quinn Emanuel Urquhart & Sullivan LLP.
The action will seek compensation for institutional shareholders who lost millions of euros in value as a result of perceived failures by Wirecard’s long term auditor, Ernst & Young GmbH (E&Y). Shareholders who acquired shares in Wirecard (ISIN: DE0007472060) in the period 1 April 2012 to 30 June 2020 (inclusive) and would like to participate in the proposed action will need to execute a litigation funding agreement with Omni Bridgeway (UK) Limited (Omni Bridgeway).
Please note, we are not currently proposing to fund a claim on behalf of retail claimants.
German company Wirecard was compelled to initiate insolvency proceedings in Germany on 25 June 2020. The catalyst for this inevitability was that its auditor, Ernst & Young GmbH (E&Y), informed Wirecard on 18 June 2020 that no sufficient audit evidence could be obtained in relation to cash balances in trust accounts that were to be consolidated in the consolidated financial statements in the amount of EUR 1.9bn (approximately a quarter of the consolidated balance sheet total).
Wirecard was then forced to acknowledge that the EUR 1.9bn in cash included in those financial statements probably never existed in the first place. The company withdrew its preliminary results for 2019, the first quarter of 2020 and its profit forecast for 2020.
The consequence of the recent actions of Wirecard is that the share price of Wirecard has dropped by 95%.
E&Y has been the auditor of Wirecard since 2008. It is an independent legal entity and a member firm of the EY global organization. E&Y has 10,400 employees and EUR 2 bn in revenues. E&Y says that it is the auditor of six out of ten of the largest German banks and that is has Germany's largest tax and legal advisory practice.
Cause of Action
The shareholder action will allege that E&Y has breached the duties that it owed to the shareholders of Wirecard under German law by failing to undertake its audit duties professionally.
Further details about the proposed claim can be obtained by contacting Omni Bridgeway using the details below.
How much will it cost to be part of the shareholder action?
The shareholder action is being run on a "no win, no pay" basis, with all costs fully underwritten by Omni Bridgeway. If you sign a funding agreement with Omni Bridgeway, you will not have to pay any fees unless the claims are successfully resolved. Omni Bridgeway will pay the other side's legal costs if the shareholder action is unsuccessful.
Current stage of case
Open to sign up: pre-proceedings.
The claim will be filed as an opt-in claim. This means that all persons who acquired Wirecard’s shares and have a recoverable loss are required to sign a litigation funding agreement to be included in the proceedings, and to obtain the benefit of Omni Bridgeway’s funding and adverse cost protection.
If you wish to participate in the shareholder action, please contact Omni Bridgeway directly by email on [email protected]
How do I sign up to obtain funding from Omni Bridgeway?
To sign up to obtain funding from Omni Bridgeway, please contact the Omni Bridgeway Client Liaison Team by email on [email protected]