Wirecard: Compensation for Investors

Litigation funding for the bundled prosecution of claims for damages against Ernst & Young (EY) in the KapMuG model proceedings by the renowned international business law firm Pinsent Masons.

Your Compensation

For your losses from Wirecard shares and bonds.

No Risk

The pursuit of your claim is 100% funded. We receive a commission only in case of success

No Expenses

The entire process is managed by a renowned international law firm.

Non-binding registration

If you are interested in our offer or have any questions, please provide your contact details here. One of our team members will then reach out to you.

Please note that we are currently only able to process funding applications from investors who have suffered a total loss of at least EUR 20,000.

The Wirecard scandal and the role of EY

On 22 June 2020, Wirecard AG (Wirecard) had to admit that alleged bank deposits in escrow accounts amounting to EUR 1.9 billion almost certainly did not exist. Within a few days, Wirecard shares crashed and lost almost their entire value. Wirecard itself filed for bankruptcy on 25 June 2020. In addition to the obvious inconsistencies at Wirecard, the role of their auditors is particularly important: EY had been auditing Wirecard’s annual financial statements since 2012 and, despite repeated indications of irregularities, EY issued reports without indications of wrongdoing up until 2018. Therefore, it is presumable that EY reacted late – too late – to the accounting irregularities. This, in the opinion of numerous lawyers, may constitute a serious oversight error that lead to EY’s liability for compensation for the losses caused by the drop in value of Wirecard shares.

On 14 March 2022, the Munich Regional Court decided that a capital markets model proceeding (KapMuG) will be brought against EY. In these proceedings, questions of fact and law which are relevant in at least 10 separate proceedings, as is the case here, will be decided in a bundled manner. This is intends to minimize the workload of the courts, and to make it easier for aggrieved investors to assert their claims.

Our offer

We offer you funding for the participation in a bundled action of several thousand damaged investors against EY in order to enforce your claims by one of the most capable international commercial law firms. You will not have to cover any costs related to the pursuit of your claim. Our offer is directed at all investors who have suffered damages as a result of the acquisition of shares and bonds relating to Wirecard. Currently, we exclude losses originating from Wirecard derivatives as well as shares and bonds purchased after the ad- hoc announcement of Wirecard released on 18.06.2020, 10:43 am. Legal representation will be provided by the experienced team of Pinsent Masons. Initially, the litigation lawyers will examine your claims and try to reach an out-of-court settlement. If this is not possible, your claims will be enforced in one or more legal proceedings.

Considering the insolvency of Wirecard, the action will likely be primarily conducted against the auditor – EY. We will register the claims financed by us in the KapMuG proceedings. As a participant, you do not bear any risk of procedural costs in the entire pursuit of the claim, i.e. both out of court and in the case of enforcement through legal proceedings. It is not necessary to have legal expenses insurance, as LitFin will finance the prosecution of the claim on your behalf.

In the event of success, you will receive the net earnings minus our success commission, which is determined by the amount of your claim according to the following table.

Amount of Loss	Success Commission
from EUR 20,000.00 up to EUR 100,000.00	21%
from EUR 100,000.00 up to EUR 250,000.00	20%
from EUR 250,000.00 up to EUR 1,000,000.00	19%
over EUR 1,000,000.00	18%

In order to sign up your claims in the model proceedings entirely and efficiently, we recommend that you register as soon as possible, as we need some time for the review of the claims and the preparation of the registration to the KapMuG proceedings. After the proceedings are opened by the court in the coming weeks, we will only accept new clients for a further three months, or until processing capacities are at their limits. This is due to the fact that participating in the model lawsuit is only possible within the first six months after the decision to initiate proceedings.

Legal representation by Pinsent Masons

Pinsent Masons is an international law firm based in London with a total of more than 1,800 lawyers in over 25 offices worldwide. With Pinsent Masons, investors can rely on a law firm with a highly experienced team led by Sibylle Schumacher and Christian Schmidt. The team members have worked, among others, in the following cases:

For the German Federal Government in the TollCollect case.
For Volkswagen AG in the Diesel scandal
For the former HSH Nordbank in advising on a EUR 1 billion investor lawsuit

With numerous partners and experts, Pinsent Masons is also able to cover all fields of law relevant to the Wirecard scandal (insolvency law, criminal law, supervisory and capital markets law etc.). Pinsent Masons is repeatedly recognized by the Financial Times as one of the most innovative business law firms in Europe, most recently in 2022.

About LitFin

LitFin – Litigation Financiers is one of the leading litigation funders in the EU and the biggest funder of private investors’ claims in the Wirecard case. Overall, we finance the pursuit of claims of more than 14,000 clients from all EU member states.

LitFin currently finances various litigation processes in the EU with a claim value of more than EUR 1.5 billion. These processes include claims against Google, MasterCard, Truck manufactures, Pesticides wholesalers, STRABAG & PORR, and, of course, Wirecard/EY.

CASES

COUNTRIES

CLIENTS

Learn more about our other cases in Germany and Austria.

Pesticides cartel

We are supporting the action against plant protection product wholesalers in Germany who were fined approximately EUR 157 million for colluding in the market. The wholesalers systematically engaged in illegal price fixing for 17 years. As a result of this infringement, farmers and agricultural businesses who purchased plant protection products from the involved wholesalers between 1998 and 2016 can claim damages.

Jurisdiction: Germany.
Amount in dispute: EUR 200 million.
Clients: Farmers and agricultural companies.

Construction cartel

Together with the renowned commercial law firm B-LAW, we are supporting local authorities as well as companies and private individuals who have suffered damages due to the construction cartel in Austria. Over 40 construction companies engaged in illegal price collusion for at least 15 years, mainly eliminating industry competition. Fines of over EUR 100 million have been imposed on the two largest companies (STRABAG & PORR), with ongoing investigations of others. The cartel affected almost all major construction projects in Austria.

Jurisdiction: Austria.
Amount in dispute: Around 20% of all the affected projects costs, plus interest.
Clients: Local authorities, companies or private individuals damaged by the cartel.

Pesticides cartel

Jurisdiction: Germany.
Amount in dispute: EUR 200 million.
Clients: Farmers and agricultural companies.

Construction cartel

Jurisdiction: Austria.
Amount in dispute: Around 20% of all the affected projects costs, plus interest.
Clients: Local authorities, companies or private individuals damaged by the cartel.

FAQ

Losses from which investments does LitFin finance?

LitFin can only take over the processing of claims from a loss of EUR 20,000 from Wirecard-related stocks and bonds purchased before 18.06.2020, 10:43 am.

What costs do I bear?

Regardless of the outcome of the proceedings, you do not bear any costs. We fully finance the enforcement of your claims.

What types of securities are accepted in the proceedings?

Based on legal advice from Pinsent Masons, we currently only accept shares (ISIN DE0007472060 and US97654L1089) and certain bonds (ISIN DE000A2YNQ58).

Can I just hand the case over to my lawyer?

Of course. However, due to the complexity of the legal proceedings, a successful outcome is more likely with the collective enforcement of claims. Plus, we only finance proceedings conducted collectively by the legal advisor and partner of our choice, Pinsent Masons.

Who are the proceedings against?

The proceedings are directed against EY. Nevertheless, throughout the process, we will evaluate the odds against other possible opposing parties and ensure that the best course of action is always taken.

Is it possible to make claims as a group of damaged investors or as a family?

Yes, if the necessary documentation is provided, you can claim as a group of persons or entities. If you wish to claim as such, please let us know and we will discuss the details in person.

What documents do I have to provide in order to participate in the action?

In order to verify your claim, we need documents that prove that you were in possession of Wirecard securities. These are usually transaction receipts and securities account statements. You will receive further details upon registration.

How does LitFin calculate the loss?

After we have received the necessary documents from your side, we calculate the amount of the claim for damages in consultation with our financial experts and lawyers. The calculation is then reviewed by Pinsent Masons and the claim is enforced.