50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

Wirecard lawsuit against EY claims 1.5 billion euros in damages

Published 12/29/2023, 09:24 AM
Updated 12/29/2023, 03:26 PM
© Reuters. FILE PHOTO: The headquarters of Wirecard AG, an independent provider of outsourcing and white label solutions for electronic payment transactions is seen in Aschheim near Munich, Germany, September 22, 2020. REUTERS/Michael Dalder//File Photo

FRANKFURT (Reuters) - Accountancy firm EY is facing a new lawsuit claiming 1.5 billion euros ($1.66 billion) in damages over its role in auditing Wirecard's books before the German payments company collapsed in 2020.

The suit was filed by Wirecard's insolvency manager Michael Jaffe in a court in Stuttgart, a court spokesperson said on Friday.

It is one of several lawsuits EY is facing in the matter, including an investor suit filed last week claiming more than 700 million euros in damages.

EY declined to comment, as it did on last week's suit.

The accounting firm has previously rebuffed claims against it for damages in relation to Wirecard.

Wirecard filed for insolvency in June 2020, owing creditors almost $4 billion, after disclosing a 1.9 billion-euro hole in its accounts that EY said was the result of a sophisticated global fraud.

The firm's downfall shook the German business establishment, putting politicians who had backed it under intense scrutiny, along with regulators who took years to investigate allegations against the payments company that were circulating prior to its collapse.

Klaus Nieding, a lawyer representing shareholders in last week's lawsuit, said that EY should have seen "relatively easily that the alleged 1.9 billion did not exist in Wirecard's corresponding accounts," because another auditor later "found this out very quickly".

© Reuters. FILE PHOTO: The headquarters of Wirecard AG, an independent provider of outsourcing and white label solutions for electronic payment transactions is seen in Aschheim near Munich, Germany, September 22, 2020. REUTERS/Michael Dalder//File Photo

Handelsblatt first reported the value of damages sought in the Stuttgart case earlier on Friday.

($1 = 0.9051 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.