Wirecard: Damages Trial Verdict Expected Today, €140 Million Demanded
Background: The Wirecard Scandal
Wirecard, once a high-flying German fintech company, collapsed in 2020 amid a massive accounting fraud scandal. The company's former CEO, Markus Braun, and other executives are facing criminal charges.
Damages Trial
A civil damages trial against Wirecard has been ongoing in Munich, Germany. The plaintiffs, including former investors and creditors, are seeking €140 million in compensation. The trial's verdict is expected today.
Key Issues in the Trial
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Negligence by Wirecard executives:
Plaintiffs allege that Wirecard executives ignored or overlooked red flags that should have alerted them to the fraud. *
Failure of auditors:
Plaintiffs also argue that Wirecard's auditors, EY, failed to adequately scrutinize the company's financial statements. *
Financial impact on plaintiffs:
Plaintiffs claim that they suffered significant financial losses as a result of Wirecard's collapse.
Expected Verdict
The verdict in the damages trial is expected to have a significant impact on the future of Wirecard. If the plaintiffs are successful, it could set a precedent for other civil cases against the company. It could also influence the ongoing criminal proceedings against Braun and other former executives.
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