The initiation of a model case under the Capital Market Model Case Act (KapMuG) in the Wirecard scandal is approaching. Investors and shareholders can join.
Investors and shareholders have suffered significant financial losses in the Wirecard scandal. As reported by the law firm MTR Legal, they have the opportunity to join a model case under the Capital Market Model Case Act (KapMuG).
After the Munich I Regional Court issued a corresponding order in March 2022 and the KapMuG proceeding was initiated before the Bavarian Supreme Court, another step has been taken, and the Munich Regional Court has begun to suspend the lawsuits filed against the auditors concerning the model case. The Munich Regional Court rejected the auditors’ argument that a model case is not permissible in this situation. Thus, nothing should stand in the way of the imminent initiation of the KapMuG case.
The model case is directed against both the auditors and the former CEO of Wirecard AG. At the core of the proceeding will be the question of whether the auditors violated their auditing duties by regularly issuing their audit certificate, even though, according to the prosecutor’s investigations, the financial statements of Wirecard AG had been “embellished” since 2015.
An audit certificate from the auditors creates trust in the investment among investors and shareholders. Thus, the Munich Higher Regional Court already confirmed on December 9, 2021, that there is a causal connection between issued certificates and investment decisions.
The various legal issues, including the auditors’ liability for damages to investors and shareholders, are consolidated and decided by the court in the KapMuG proceeding. Aggrieved Wirecard shareholders can join the model case to assert their claims for damages. Additionally, participation suspends the statute of limitations for these claims. The judgment in the KapMuG proceeding is initially binding on the defendants and the model plaintiff, but it can then be applied to plaintiffs who joined the model case.
Since participation in the model case involves little financial risk, it is also recommended for investors and shareholders without legal insurance. Registration for participation must be carried out by a lawyer.
