The process surrounding what is probably the largest and most sensational financial scandal in recent years has made one sit up and take notice: Wirecard creditors who, after massive losses in the first instance of the process, were rejected in their claims for damages against the auditing company EY. The background: EY had audited the wrong balance sheets of the former Dax group. But on Thursday the change came when the Munich Higher Regional Court, which is entrusted with the matter, made serious doubts about the court decisions of the first instance public in a preliminary notice. At that time, the regional court dismissed lawsuits against EY without taking any further evidence. But now the situation looks different: At that time the regional court – analogous to the diesel scandal – should have examined much more precisely whether EY acted deliberately immorally, so the OLG now.
The preliminary information does not mean that the OLG considers the auditors of EY to be jointly responsible in every case, or that the success of the lawsuits against the auditing company is now guaranteed. However, the 8th civil senate of the OLG made it very clear that, in its opinion, the regional court dealt with the case far too superficially. In particular, the Senate complains that the regional court probably lacks “own expertise” to assess the allegations made against EY in an expert report by the auditing company KPMG. According to the OLG, an expert opinion would have been appropriate for this.
In addition, the Higher Regional Court accuses the regional court of having ignored the report of the Wirecard investigative committee in the Bundestag, namely “in a manner that is unhearful” to the detriment of the plaintiff’s investors. The OLG recommended the regional court to open a model case. As an option, however, the OLG is also considering referring the proceedings back to the regional court in order to catch up on the extensive evidence that has so far been missing.
Wirecard first admitted invented bookings in the amount of 1.7 billion euros in June 2020 and filed for bankruptcy a little later. EY had previously checked and audited the company’s balance sheets for years without discovering the alleged fraud. The Munich public prosecutor’s office assumes that the board acted like a criminal gang and deliberately falsified the balance sheets for years in order to steal bank loans and investor money. Former CEO Markus Braun has been in custody for almost a year and a half, while ex-Wirecard manager Jan Marsalek from Austria is still swallowed up by 1.9 billion euros – making it one of Europol’s “Most Wanted” .
For the shareholders, the Wirecard bankruptcy meant enormous losses in the double-digit billions. As a result, hundreds of claims for damages against EY have been received by the Munich district court, which have so far been dismissed.
