On November 21, 2024, the Bavarian Supreme Court will hear a significant model lawsuit from a shareholder in Hesse against Ernst & Young (EY), linked to the Wirecard scandal that led to the company's collapse in 2020.

This model proceeding aims to simplify and expedite the legal resolution of the Wirecard scandal, which has resulted in over 19,000 damage claims totaling more than 15 billion euros, with shareholders seeking 8.5 billion euros in losses.

Critics, including the SdK shareholders' association, have expressed frustration over the court's slow progress, noting that it took over four years to reach a preliminary hearing.

The court acknowledges the complexity of the case and the vast number of claims, suggesting that a prolonged timeframe for the proceedings is unavoidable.

The lawsuit primarily targets EY, which had previously confirmed Wirecard's allegedly fraudulent financial statements over several years.

Investors can seek compensation if they were misled into purchasing Wirecard shares based on false information, particularly regarding the company's allegedly fabricated profits confirmed by EY's audits.

EY has dismissed the claims as unfounded, asserting that there are no valid compensation claims against them.

Lawyer Peter Mattil estimates that a verdict could be reached within three years if the court expedites the process and commissions a report detailing EY's alleged breaches.

The court's initial task will be to determine if the claims against EY are legally permissible within the framework of the capital investors' model proceedings.

The situation is further complicated by the involvement of former CEO Markus Braun as a defendant, who has limited recoverable assets due to his financial losses following Wirecard's collapse.

Wirecard shares peaked at nearly 200 euros in 2018 but plummeted to mere cents after the company's bankruptcy, resulting in significant losses for shareholders.

The model lawsuit represents 8,500 claims totaling 750 million euros, which are currently on hold pending the outcome of this case.