Investors and shareholders of the insolvent Wirecard AG have just under six months to join the model proceedings under the Capital Markets Model Case Act (KapMuG).
Capital market law offers investors the opportunity to join a kind of “class action” through the Capital Markets Model Case Act (KapMuG). This option is also available to investors and shareholders of Wirecard AG. After the Bavarian Supreme Court of Justice (BayObLG) appointed the lead plaintiff on March 13, 2023, investors have just under six months to join the model lawsuit to assert claims for damages. This period begins with the publication of the lead plaintiff in the Federal Gazette. Alternatively, claims for damages can also be pursued with an individual lawsuit until the end of 2023, explains the business law firm MTR Legal Rechtsanwälte, specializing in capital market law.
The model lawsuit is directed against the former CEO of Wirecard AG and the auditors. It is to be clarified whether the auditors made themselves liable for compensation to the investors and shareholders of Wirecard-AG. The background is that they regularly certified Wirecard’s financial statements, even though the financial statements had been “embellished” since 2015 according to the prosecutor’s investigations.
A certificate plays an important role in an investment decision, as investors and shareholders trust the information. The Munich Higher Regional Court also confirmed on December 9, 2021, that there is a causal link between investment decisions and issued certificates. In the Wirecard model proceedings, it shall now be clarified, among other things, whether the auditors did not fulfill their audit duties properly and thereby made themselves liable for compensation.
After the Munich Regional Court decided that Wirecard shareholders cannot register claims for damages in the insolvency proceedings (Az. 29 O 7754/21) and the Frankfurt Higher Regional Court made it clear that there are no claims for damages against BaFin (Az.: 1 U 173/22), the model proceedings are a possibility for Wirecard-AG shareholders to still be able to enforce claims for damages with low litigation cost risk.
In this context, the decision in the model proceedings is initially binding only for the defendant and the lead plaintiff. It can subsequently be extended to the participants of the model lawsuit. Registration to participate in the model proceedings must be carried out by a lawyer.
MTR Legal offers Wirecard investors advice from lawyers experienced in capital market law.
