Former Wirecard executives must pay €140 million in damages, court rules

Former Wirecard executives must pay €140 million in damages, court rules

A Munich court today ordered three former board members of the collapsed German financial services company Wirecard to pay €140 million in damages plus interest. The court said they were at least negligent in some of their financial transactions, making them liable for the damages, DPA news agency reported.

The judgment is not yet final

The ruling concerns the company’s former chairman Markus Braun and two other executives. The lawsuit was filed by the company’s insolvency administrator Michael Jaffé, who wants to recover money for creditors.

The court’s verdict concerns a loan of over €100 million and the subscription of bonds worth a further €100 million. The verdict is not yet final and an appeal is expected, DPA reports.

The defendant faces further charges

Braun remains in custody for the time being and continues to face other charges, including falsifying financial statements, fraud, financial market manipulation and embezzlement, according to Die Presse.

Financial services company Wirecard declared insolvency in June 2020 when it emerged that it was missing around €1.9 billion it had reported in its accounts. Wirecard’s collapse did not only harm banks and bondholders, but also tens of thousands of the company’s shareholders.

Source: Czech Press Office

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