The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Wirecard AG ("Wirecard," the "Group," or the "Company") (OTC: WCAGY, WRCDF) securities between August 17, 2015 and June 24, 2020, inclusive (the "Class Period"). Wirecard investors have until September 8, 2020 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On June 18, 2020, the Company announced the need to further delay publication of its financial results and revealed that about €1.9 billion ($2.1 billion) in cash had gone missing. The Company also warned that loans up to €2 billion could be terminated. Additionally, the Company stated that Ernst & Young was unable to confirm the location of the cash in certain trust accounts and there was evidence that "spurious balance confirmations" had been provided.
On this news, the Company’s share price fell $69.74, or over 69%, to close at $29.90 per share on June 18, 2020.
On June 23, 2020, CNN reported that Wirecard’s former CEO, Markus Braun, was arrested "after a $2.1 billion hole exploded in [Wirecard’s] accounts." The article further stated that "Munich prosecutors confirmed that Braun, Wirecard's former CEO, was arrested on suspicion of having inflated the digital payment company's balance sheet and sales through fake transactions in order to make it more attractive to investors and customers."
On this news, the Company’s share price fell $4.85, or over 34%, to close at $11.41 on June 23, 2020, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Wirecard overstated its cash balances during the Class Period, falsely claiming €1.9 billion of cash in a trust account that was missing; (2) that Wirecard overstated its financial results during the Class Period, including revenue and EBITDA; (3) that Wirecard did not have adequate risk management or countermeasures; (4) that EY failed to audit Wirecard in accordance with applicable auditing principles; and (5) as a result, Defendants’ statements about Wirecard’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased Wirecard securities during the Class Period, you may move the Court no later than September 8, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Wirecard securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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