In a large-scale raid, the Frankfurt public prosecutor’s office searched the premises of the Adler Group. The allegations involve balance sheet falsification, breach of trust, and market manipulation.
On June 28, 2023, the Frankfurt public prosecutor’s office and the Federal Criminal Police Office, with 175 investigators, moved in on the Adler Group. They searched business premises and apartments at several locations in Germany and Europe. Investigators are pursuing the suspicion of balance sheet falsification, breach of trust, and market manipulation. According to media reports, the focus of the investigations is the German subsidiary Adler Real Estate.
According to Handelsblatt, seven individuals are under investigation, including current and former managers of the real estate company. They are suspected of artificially inflating the balance sheets for the years 2018 to 2020. Properties are said to have been overvalued. In addition, preferential offers and sham transactions are alleged to have taken place to artificially drive up prices for real estate projects.
The allegations are not entirely new. For the 2021 financial statements, the auditors refused their certification. They justified this by claiming that access to certain information related to significant transactions had been denied.
The events eventually brought BaFin into play. The financial supervisory authority is scrutinizing the financial statements of Adler Real Estate for the years 2019 to 2021. Furthermore, the investors and shareholders of the Adler Group have had to endure that the company has reported a substantial loss in billions and its shares have significantly lost value.
Now, with the suspicion of balance sheet falsification and market manipulation, the next bad news has surfaced. To protect themselves from financial losses, investors and shareholders can have their legal options reviewed, according to the law firm MTR Legal, which specializes in capital market law and stock law.
Claims for damages may have arisen if the Adler Group violated its duty of disclosure and failed to promptly publish essential information affecting the share price. If the suspicion of balance sheet falsification and market manipulation is confirmed, claims for damages may also arise from this.
At MTR Legal, experienced lawyers advise in capital market law and stock law.
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