High Court Rejects Wirecard Shareholder Claim

A German high court dismissed a bid by Wirecard shareholders seeking a larger portion of the company's assets after its 2022 collapse due to a massive financial scandal. Shareholders hoped to be treated equally with creditors in the insolvency process, but the court disagreed, stating risks were inherent in ownership.

In a significant judicial verdict, Germany's Federal Court of Justice has dismissed a claim by Wirecard shareholders, who sought greater access to the remaining assets of the disgraced financial company. Wirecard collapsed in 2022, marking the country's biggest post-war fraud case due to the revelation that 1.9 billion euros purportedly held by the company were fictitious.

The appeal, led by Union Investment, was anchored on the argument that as victims of Wirecard's fraudulent actions, shareholders should receive the same treatment as creditors rather than being relegated to the end of the line in claims processing. However, the court definitively ruled against this proposal, emphasizing that shareholders intrinsically carry risks tied to their pursuit of ownership shares.

This case reflects broader criticisms aimed at German regulatory bodies for their perceived hesitance in scrutinizing Wirecard, once regarded as a rare digital success. Currently, the company's assets stand at approximately 650 million euros, dwarfed by outstanding claims totaling 15.4 billion euros, leading to likely negligible returns for shareholders.

(With inputs from agencies.)