Law firm calls for Wirecard investors to sign up for class action lawsuit

Faruqi & Faruqi, a leading national securities law firm, reminds American Wirecard investors that they have until September 8 to sign up to be part of a class action lawsuit against the collapsed FinTech.

The law firm said that anyone who has invested in Wirecard American depository receipts between August 15, 2015 and June 24, 2020 is free to contact the lawyers to be part of the suit.

June 24 was the day before Wirecard filed for insolvency after it was revealed that the company had a $2.1bn hole in its finances that was supposed to be part of its Asian business, but was revealed to have never existed in the first place.

It later emerged that the missing money was part of an alleged multi-billion fraud aimed at inflating the company’s profits in the eyes of stakeholders and potential investors.

The Farugi & Farugi lawsuit has been filed in the U.S. District Court fo the Easter District of Pennsylvania.

The class action suit focuses on whether or not Wirecard and its leadership violated federal securities laws by failing to disclose the overstated cash balances, to put adequate risk management measures in place and to properly audit the company.

Following the collapse of Wirecard, several members of the company’s executive leadership have either been arrested or are being sought after by international authorities.

Wirecard’s implosion has also motivated calls for regulators to do more to scrutinise FinTech companies, given that the financial irregularities in the company’s balance sheet seemingly slipped through their fingers for years.

In fact, German regulator BaFin is also facing legal action from investors in a separate lawsuit. That lawsuit was filed by lawyer Andreas Tilp on the investors’ behalf and accuses BaFin of having failed in its due diligence when it comes to Wirecard.

BaFin has responded by questioning if the suit is legal as the regulator works on  the behalf of the public and not for investors.

A third class action suit is being put together by the Rosen Law Firm against Wirecard.

Copyright © 2020 FinTech Global

Enjoying the stories?

Subscribe to our daily FinTech newsletter and get the latest industry news & research


The following investor(s) were tagged in this article.