The initiation of a model proceeding under the Capital Markets Model Case Act (KapMuG) in the Wirecard scandal is drawing closer. Investors and shareholders can join.
Investors and shareholders have suffered significant financial losses in the Wirecard scandal. As reported by the commercial law firm MTR Legal, they have the opportunity to join a model proceeding under the Capital Markets Model Case Act (KapMuG).
After the Munich I Regional Court issued a corresponding decision in March 2022 and initiated the KapMuG proceeding before the Bavarian Supreme Court, another step has now been taken, and the Munich Regional Court has begun to suspend the claims previously filed against the auditors in view of the model proceeding. The argument of the auditors that a model proceeding was not permissible in this case was dismissed by the Munich Regional Court. Thus, nothing should stand in the way of an imminent opening of the KapMuG proceeding.
The model proceeding is directed both at the auditors and the former CEO of Wirecard AG. The core of the proceeding will include the question of whether the auditors violated their audit duties by regularly issuing their certifications, even though the financial statements of Wirecard AG had been “beautified” since 2015 according to the prosecutor’s investigations.
An auditor’s certification instills trust in the investment among investors and shareholders. The Higher Regional Court of Munich confirmed in an order dated December 9, 2021, that there is a causal link between issued certifications and investment decisions.
The various legal issues, including the auditors’ liability for damages towards investors and shareholders, will be bundled in the KapMuG proceeding and decided by the court. Affected Wirecard shareholders can join the model proceeding to assert their claims for damages. In addition, participation also suspends the statute of limitations on claims. The judgment in the KapMuG proceeding is initially binding for the defendants and the lead plaintiff, but it can then be applied to plaintiffs who have joined the model proceeding.
Since participation in the model proceeding involves little financial risk, it is also suitable for investors and shareholders who do not have legal protection insurance. Registration to participate must necessarily be done through a lawyer.
