Lack of proper accounting: the court declares Wirecard’s financial statements null and void

No proper accounting
The court declares Wirecard’s financial statements null and void

This is bad news for shareholders: in a civil proceeding, the Munich regional court subsequently declared null and void the financial statements of the scandalous Wirecard group for the years 2017 and 2018. This would allow the bankruptcy trustee to claim the dividends for the two years.

Payment service provider Wirecard’s 2017 and 2018 financial statements were incorrect according to the findings of the Munich I Regional Court. The court declared the two-year annual accounts and dividend resolutions of the respective general meetings null and void. The bankruptcy trustee Michael Jaffe, who had obtained the verdict, could thus claim dividends for the two-year period from the shareholders – for a total of approximately 47 million euros -.

Whether the € 1.9 billion missing, as Jaffe claims, never existed or were only in other accounts, as then CEO Markus Braun suspected, is irrelevant, said Chief Justice Helmut Krenek. In any case, Wirecard has violated the principles of correct accounting. “If the funds are there, they should have been found in the accounts.”

The group collapsed in 2020 after admitting false bookings of € 1.9 billion, former CEO Markus Braun has been in custody for nearly two years. Wirecard recorded high profits totaling over 600 million euros in 2017 and 2018. According to investigations by the Munich prosecutor’s office, these profits actually did not exist.

EY’s auditors had certified the two-year financial statements.

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