Damages Sought In The Wirecard Action Against EY Total 1.5 Billion Euros

A fresh lawsuit against accounting firm EY seeks damages of 1.5 billion euros ($1.66 billion) for the company’s involvement in Wirecard’s book audits prior to the German payments company’s collapse in 2020.

According to a court spokesperson on Friday, Wirecard’s insolvency manager, Michael Jaffe, filed the lawsuit at a Stuttgart court.

It is one of many lawsuits that EY is dealing with in this regard, including an investor litigation that was filed last week and seeks damages exceeding 700 million euros.

There were no comments from EY.

The accounting company has already rejected lawsuits seeking damages from it in connection with Wirecard.

In June 2020, Wirecard declared bankruptcy, leaving creditors with an over $4 billion debt, following the revelation of a 1.9 billion-euro hole in its books, which EY claimed was the consequence of a complex worldwide scam.

The company’s demise rocked the German business community, drawing harsh criticism from lawmakers who had supported it as well as regulators who took years to look into charges that had been making the rounds against the payments company before it failed.

In the case filed last week, Klaus Nieding, an attorney for shareholders, claimed that since another auditor “found this out very quickly,” EY should know “relatively easily that the alleged 1.9 billion did not exist in Wirecard’s corresponding accounts.”

The amount of damages requested in the Stuttgart lawsuit was initially disclosed by Handelsblatt earlier on Friday.

(Adapted from CNBCTV.com)

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