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Wirecard investors target EY parent for 1.5 billion euros in compensation -Breaking


© Reuters. FILEPHOTO: Wirecard AG logo pictured in its Aschheim headquarters, near Munich on July 1, 2020. REUTERS/Andreas Gebert/File photo

LONDON (Reuters – Better Finance, a European campaign group for investors, announced Wednesday that it created a foundation to aid 30,000 European investors in recovering 1.5 billion euros ($1.64 Billion) of losses suffered by them when German payments company Wirecard failed.

Better Finance claimed that the foundation is a Dutch legal entity and was created to attack the EY global parent. This accounting firm audited Wirecard’s books.

Marc Tuengler is the managing director at DSW, which is a German investor organization that has teamed up to create the foundation with Better Finance.

Tuengler explained that a Dutch foundation can offer options that aren’t available in German law.

EY had no immediate comment.

Wirecard was founded 1999 and began processing gambling payments. It then became a prominent fintech company and member of Germany’s bluechip.

After disclosing that it had a $1.9 billion gap in its accounts, EY stated that this was due to sophisticated fraud.

Klaus Nieding from Nieding+Barth, a law firm, stated that EY worldwide or Germany will not settle amicably. Investors can then go to court and the foundation will pay the legal costs.

($1 = 0.9173 euros)

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