With Wirecard bankrupt, investors go after Ernst & Young for lack of bank confirmations in missing $2.1B funds

Law firm Schirp & Partner and attorney Dr. Marc Liebscher of Dr. Späth & Partner said more plaintiffs were being assembled for further class action lawsuits, with thousands of claimants coming forward from both private and institutional investors.

Lawyers Schirp and Liebscher see their legal position as being “fully confirmed by a Financial Times which stated EY did not have any bank confirmations at all during the audit of Wirecard’s financial statements 2016 to 2018 for the problematic escrow accounts where at least 1 billion euros ($1.125 billion) could not be traced.

A head of audit of a rival auditing firm confirmed that EY has breached its “fundamental obligations” in this case.

“It has been confirmed that there was no bank confirmation for significant amounts in escrow accounts. We cannot understand how EY was able to sign off Wirecard’s annual financial statements 2016 to 2018 in this situation. Our clients want to hold EY accountable for this,” said Schirp

“Wirecard drops out as a defendant due to insolvency. This makes it all the more important that EY must pay compensation to investors. The new evidence reinforces the position we have already taken. Our wave of class actions against EY will be enormous,” said Liebscher.