Wirecard class action in Germany
The Wirecard class action in Germany is reshaping European securities litigation. A look at where it stands.
German law firm TILP, which works exclusively on behalf of shareholders to bring “cost effective and procedurally efficient” class action lawsuits against major listed companies, has filed a lawsuit against EY over the auditor’s role in the multi-billion-euro Wirecard scandal.
The claim alleges that EY breached its duty to investors by “aiding and abetting” Wirecard in filing “false annual reports”.
The firm had filed individual lawsuits soon after the start of the scandal and has now been able to group them as a single case.
EY is weighing an appeal, as the tribunal had rejected previous attempts to bring a class action, stating that audits are not covered by the current class action procedure.
“A German court has opened class-action style legal proceedings against accounting firm Ernest & Young LLP (EY) to hear cases from investors in defunct payment company Wirecard AG.”
Published 16 March 2022 by Steve Shinn
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