The logo of the auditing and consulting firm Ernst & Young (EY) is attached to the top floor of the high-rise in the Spreedreieck on Friedrichstrasse. picture alliance/dpa/dpa-Zentralbild | Soeren Stache
Lawyers for former Wirecard shareholders are taking action against the restructuring of the German business of the auditing firm EY. For years, EY had audited the figures of the former DAX group, which collapsed due to billion-dollar accounting fraud. The representatives of former investors are now accusing the company of wanting to protect itself from possible compensation payments through restructuring. EY emphasized to the “Handelsblatt” that the corporate law changes “have no impact on EY’s liability risks”.
The Wirecard scandal has tarnished the image of EY’s auditors. They had audited the DAX group’s balance sheets for years. Compared to the economic crime surrounding the billion-dollar accounting fraud at the payment service provider, what EY – formerly known as Ernst & Young – has been pushing forward in Germany in recent months seems dry.
The auditing company is restructuring itself under corporate law. But lawyers for former Wirecard shareholders see the restructuring as a continuation of the scandal surrounding the former darling of German investors.
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Compensation for damages in the Wirecard scandal: Why shareholders are now suing EY over restructuring
According to a report by “Handelsblatt“The Mattil law firm, which represents the private investor Kurt Ebert, wants to have the restructuring of the German business declared null and void by a court. She considers it “abusive of the law and immoral”. The lawyers suspect that EY wants to protect itself from possible compensation payments due to Wirecard.
EY is confronted with enormous demands. Just last December, the German Association for the Protection of Securities Ownership (DSW) filed an 80,000-page lawsuit for damages on behalf of more than 13,000 private and institutional investors. According to the DSW, the claims have a volume of over 700 million euros.
The restructuring of EY in this country only began for a short time. First, the company converted its German GmbH into a limited partnership. In the next steps, EY legally separated the troubled auditing division from the consulting divisions.
This brought the lawyers of Wirecard’s creditors into action. According to “Handelsblatt”, consulting units that recently generated three quarters of annual sales now only have to be liable for the consequences of the Wirecard scandal for five years – with amounts in the low millions.
Restructuring at EY: “As if VW had spun off the entire car business”
“It is as if VW had spun off the entire car business from the group after the diesel scandal in order to minimize claims against the company,” lawyer Peter Mattil told the newspaper. With two lawsuits, Mattil wants to ensure that EY is liable for all of the assets that were in the German branch until the restructuring.
EY did not comment on the allegations to Handelsblatt. However, with regard to Wirecard, the consulting company explained that the changes to corporate law “would have no impact on the liability risks for existing and completed mandates or on ongoing civil proceedings.”
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Child benefit: The A21 platform closes on May 10
– 2024-05-02 12:42:14
The A21 online application platform for the 2024 child benefit is temporarily closed on Friday, May 10, as informed by the Ministry of Social Cohesion and Family and the supervisee Organization of Benefits and Social Solidarity (OPEKA).
After this time, the online platform will not accept new applications until the settlement and payment of the 2nd bimonthly installment for 2024 is completed. Upon completion of the payment, the online platform will be reactivated for new applications.
Interested beneficiaries are reminded that in order to be granted the child benefit, the application must be submitted definitively and approved. A cached application is considered unsubmitted and will not be considered.
The 2nd bimonthly installment of 2024 – covering the months of March and April – will be paid on Friday 31 May 2024, the last working day of the month together with the remaining benefits.
Beneficiaries of the child benefit can submit the application to related link.
Those interested in learning more about child benefit can visit relevant OPECA page.
On the same website you can search and find any information about benefits and find out what you are entitled to.
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Child benefit: The A21 platform closes on May 10 – 2024-05-02 12:42:14
Peloton Announces Layoffs and CEO Barry McCarthy’s Resignation as Cost-Cutting Measures
Peloton Announces Layoffs and Leadership Transition
Peloton Implements Cost-Cutting Measures
Peloton, the renowned exercise equipment maker and online fitness course provider, recently revealed its plans to lay off approximately 400 employees, amounting to 15% of its workforce.
CEO Barry McCarthy Steps Down
Alongside the cost-cutting measures, the company also announced the departure of its CEO, president, and board director, Barry McCarthy. McCarthy, previously known for his significant contributions as CFO at Spotify and Netflix, had initially come out of retirement in 2022 to assume the role at Peloton.
A String of Leadership Transitions
Peloton has been facing several leadership changes in recent years. The company’s co-founder and then-CEO, John Foley, left his position in 2022 amidst a major cost-cutting effort that entailed the layoff of 2,800 employees. Although Foley continued to serve as executive chair, he ultimately resigned, alongside co-founder and chief legal officer, Hisao Kushi, seven months later.
Interim Leadership and Finding a Successor
Currently, Peloton is actively seeking a successor to Barry McCarthy. During the transition, the company’s chairperson, Karen Boone, and director, Chris Bruzzo, are set to assume the role of interim co-CEOs.
Peloton’s Financial Journey
Peloton entered the public market in 2019 with an initial valuation of $6 billion. Following the onset of the global pandemic, the company experienced a significant surge in demand as individuals looked for means of exercise within the confines of their homes. This spike in interest allowed the company’s market capitalization to increase to $50 billion by early 2021.
However, as the world gradually returned to normal, Peloton’s shares also recalibrated, resulting in its market cap falling to $10 billion in January 2022, a year after its peak. Currently, the New York-based company’s market cap rests just above $1 billion.
Despite its recent challenges, Peloton’s shares experienced a boost, surging as high as 13.3% in pre-market trading after the company’s announcement of cost-cutting measures.
Peloton’s Cost-Reduction Strategy
Aside from personnel reductions, Peloton intends to continue reducing its brick-and-mortar presence in retail showrooms. Furthermore, the company plans to focus on its international growth by employing a more targeted and efficient go-to-market strategy. These measures are anticipated to yield a reduction in annual expenses by more than $200 million by the end of the 2025 fiscal year.
Q3 2024 Revenue and Loss
Peloton recently reported Q3 2024 revenue and loss figures that fell short of expectations. The company also experienced a 21% decline in paid app subscriptions compared to the previous year. The announcement of these disappointing results prompted a 24% decrease in share value back in February when Peloton reported continued revenue declines and provided a gloomy outlook for the upcoming months.
Peloton Announces Layoffs and CEO Barry McCarthy’s Resignation as Cost-Cutting Measures