Michael Jaffe, Wirecard's insolvency manager, has filed a €1.5 billion lawsuit against EY for its role in auditing the collapsed payments processor. This is just one of several claims against EY, with investors recently filing a separate €700 million lawsuit.
Wirecard, which once served as a point of pride for Germany, collapsed in 2020 after it reported that €1.9 billion was missing from its accounts. EY has claimed this shortfall was the result of a sophisticated fraud. The debacle created a national embarrassment for Germany, especially as further investigation revealed that politicians and regulators had failed to act upon — and had, in some cases, stifled — related accusations in the years leading up to the firm's collapse.
This content is available to paid Members of Starling Insights.
If you are a Member of Starling Insights, you can sign in below to access this item.
If you are not a member, please consider joining Starling Insights to support our work and get access to our entire platform. Enjoy hundreds of articles and related content from past editions of the Compendium, special video and print reports, as well as Starling's observations and comments on current issues in culture & conduct risk management.
Join The Discussion