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December 30, 2023 at 6:47 am Update: 2 days ago
The curator of the insolvent payment processor Wirecard from Germany has filed a lawsuit against Ernst & Young (EY). The auditing firm is accused of deficiencies in the audit.
The auditors from EY were responsible for auditing Wirecard’s annual figures. The curator has long accused them of systematic control deficiencies and is demanding compensation of 1.5 billion euros.
The lawsuit concerns audits of the 2015 to 2019 financial statements. “The defendant repeatedly, seriously and willfully violated his contractual and legal obligations as an accountant,” the court documents state.
The case concerns the so-called Wirecard scandal. The company began processing credit card payments in 1999 and became one of the most valuable companies on the Frankfurt Stock Exchange. But the company collapsed and former top managers were prosecuted.
According to the curator, damage could have been prevented
He has been writing a business newspaper since 2019 Financial Times about irregularities in accounting at Wirecard. A year later, accountants also found evidence of manipulation of the numbers.
The company went bankrupt in 2020 when it became clear that almost 2 billion euros had been lost on the balance sheet.
“If the facts had been properly clarified, the Wirecard affair would have been discovered early on, the harmful actions of those responsible would have stopped and the resulting damage would have been prevented,” says the lawsuit against the auditing firm EY.
The curator and EY did not want to respond to the German Press Agency DPA.
Image: AFP
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