Higher Regional Court of Munich: Wirecard shareholders must receive a quota from the insolvency estate

Higher Regional Court of Munich: Wirecard shareholders must receive a quota from the insolvency estate

The Munich Higher Regional Court has ruled that Wirecard shareholders must receive a quota from the insolvency estate. The court based its decision on the fact that the shareholders had been deceived by the Management Board for years about the true state of the company. They should therefore be treated as external creditors.

The decision is not yet final. Insolvency administrator Jaffé, who does not want to pay the shareholders from the insolvency estate, can still appeal to the Federal Supreme Court and intends to do so.

Dr Wolfgang Schirp from Berlin, who represents approx. 1,950 Wirecard victims with his law firm Schirp & Partner: ‘The decision of the Munich Higher Regional Court is very pleasing for Wirecard shareholders. However, it remains to be seen whether the BGH will confirm this decision. Also, one should not have too high hopes regarding the amount of the insolvency quota. Insolvency administrator Jaffé has been able to secure around EUR 650 million in assets for the estate. First of all, the costs of the proceedings must be paid from this amount. Then the assets are to be distributed among the 15.4 billion euros in registered claims, of which 8.5 billion euros are attributable to shareholders. This means that only a single-digit percentage can be expected.

Dr Schirp continued: ‘For those aggrieved parties who have asserted their rights against Ernst & Young (EY), the capital investor sample proceedings therefore remain important. This is because the lion's share of the compensation must come from EY. The first hearing will take place on 22 November. We will fight to ensure that EY has to pay damages. The demand for collateral against EY also remains important so that EY cannot ‘empty’ itself economically by changing its legal form and thus effectively evade liability.’

For further information, please contact Dr Wolfgang Schirp, Kantstraße 149, D - 10623 Berlin, tel. 030-3276170 and 0179-5320213, mail: schirp@schirp.com, URL: www.schirp.com