In the Wirecard scandal, the auditors from EY violated their duties while auditing the financial statements. This was determined by the auditor oversight APAS, which imposed sanctions.
The Wirecard scandal came to light in 2020 when it was revealed that nearly two billion euros had disappeared from the group’s financial statements or never existed. Despite this, the auditors from EY had been issuing their certification for the annual financial statements of the now insolvent Wirecard AG for years and are under criticism. The German auditor oversight APAS has now established that the EY auditors violated their duties in the audit of Wirecard’s financial statements and imposed strict sanctions. The auditing firm is prohibited from accepting any assignments for auditing the financial statements of public interest entities for a period of two years. Additionally, APAS imposed a fine of 500,000 euros.
Particularly for the injured shareholders of Wirecard AG, the question arises whether they can assert claims for damages against the auditors from EY. Although the decision by APAS is not legally binding for other proceedings in the Wirecard scandal, it becomes evident that the EY auditors apparently violated their auditing obligations and issued their certification. For investors, the certification by the auditors can be an important aspect of their investment decision. The Higher Regional Court of Munich confirmed in an order dated December 9, 2022, that there is a causal connection between the certifications issued and investment decisions.
Injured Wirecard investors have the option to assert their claims for damages individually or join a kind of “class action.” Capital market law provides for a model proceeding as per the Capital Investor Model Proceedings Act (KapMuG), explains the law firm MTR Legal Rechtsanwälte, which specializes in capital market law.
In the Wirecard model proceeding, it is to be clarified, among other things, whether the auditors are liable for damages to the shareholders. The judgment is initially binding only for the model plaintiff and the defendants. It can then be applied to the participants of the model proceeding.
Registration to participate in the model proceeding is still possible until September 18, 2023, and must necessarily be carried out by a lawyer.
MTR Legal offers Wirecard investors advice from lawyers versed in capital market law.
