After the insolvency of the payment service provider Wirecard, former responsible parties not only have to answer in a criminal case. A claim for damages worth 140 million euros was heard in Munich today.
It’s about a lot of money. Former board members, including former CEO Markus Braun and supervisory board members, are said to have damaged Wirecard AG by 140 million euros. The insolvency administrator Michael Jaffé accuses them of this. They blatantly violated their duty of supervision as prudent business people.
The presiding judge Helmut Krenek made it clear in the oral hearing at the Munich I Regional Court that there was a lot to be said for this view of things. As is often the case in civil litigation, plaintiffs and defendants were represented by their lawyers.
Unsecured loans Business partner
Within a few months at the end of 2019 and beginning of 2020, the Wirecard board led by then boss Markus Braun wanted to grant a company in Singapore a loan of 100 million euros. A few months later, a subsidiary of this company was also to be given 100 million – with the argument that new payment transactions would be processed through the service provider.
The supervisory board approved this. 60 million have been repaid, 140 million are probably gone. Although Wirecard has had new financing options since joining the DAX, these loan amounts were the highest ever paid to business partners and the loans were unsecured. According to the insolvency administrator, they represented a significant risk for the company. In doing so, those responsible would have breached their duties.
Supervisory board versus board of directors
During the negotiation it became clear that the supervisory board members are of the opinion that they were duped by the former board members of Wirecard AG, namely Braun and the CFO Jan Marsalek.
Lawyer Stefan Freund, who represents ex-supervisory board member Stefan Klestil, spoke of a strong bond on the board. “They did whatever they wanted on the board anyway.” The court will decide in September whether the insolvency administrator is successful in his lawsuit.
Further civil lawsuits are pending
This lawsuit was one of many being heard in the Wirecard complex in Munich. Former CEO Braun and other people responsible have to answer in a criminal case for commercial gang fraud, breach of trust, falsification of accounts and market manipulation. In addition, there are currently around 4,300 civil proceedings pending, 4,100 of which are against the auditing firm EY, which audited the company’s balance sheets and is accused of serious omissions.
A so-called capital investor model case is also scheduled to begin before the Bavarian Supreme Court in the fall. Lawsuits are heard there in a consolidated manner. Given the 3,500 people involved, the court is looking for a sufficiently large hearing room.
Wolfram Schrag, BR, tagesschau, February 21, 2024 7:42 p.m