Wirecard auditors sued over $ 1.9 billion loss by company

The German SdK Shareholders Association said it has sued Wirecard auditors from Big Four Ernst & Young (EY). The lawsuit relates to two current employees and one former, reports CNBC.

The shares of the payment card issuer collapsed after the auditors could not confirm the presence of balances of € 1.9 billion on its accounts.

On June 17, the securities of the company included in the DAX index cost € 104.5 apiece, at the moment quotes are $ 1.28, or just over 1% of the previous level.

EY stated that there are “clear signs of complex and sophisticated fraud involving multiple parties around the world in various institutions with the intentional purpose of deception.”

In defense of their employees, the company noted that “even the most reliable and advanced audit procedures” could not reveal a “fraudulent arrangement.”

According to media reports, the Japanese holding SoftBank intends to sue EY for the collapse of Wirecard.

Former CEO of the German company Marcus Brown, who resigned after detecting a loss of funds, was arrested on suspicion of fraud. Wirecard decided to go bankrupt.

The company also issued bank cards for several cryptocurrency companies, including the British Crypto.com and TenX. The UK Financial Supervisory Authority (FCA) on the eve suspended the work of the local “daughter” Wirecard.

Crypto.com noted that the regulator had previously asked to stop all card transactions. TenX said its fiat and cryptocurrency assets are safe because Wirecard did not control them.

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