6/26/2020, 10:56 AM (Source: TeleTrader)
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SdK charges Ernst & Young in Wirecard case

German shareholder association Schutzgemeinschaft der Kapitalanleger e. V. (SdK) filed on Friday criminal charges against auditors of Ernst & Young related to the Wirecard AG's accounting scandal and the missing €1.9 billion.

The SdK's charges are based on the supposed auditors' failure to follow the basic procedures and check the Wirecard's bank deposits in the period between 2016 and 2018. Despite that being "one of the easier tasks," EY allegedly didn't request the balance confirmations. Charges include two current and one former EY auditors.

This story comes shortly after the EY's allegations that the Wirecard committed "elaborate and sophisticated fraud," and amid the scandal that caused the company's stocks to plummet 92.84% in a week. Wirecard's shares dropped by 47.74% on Friday, selling for €1.85 per share at 11:18 am CET.

Breaking the News / BU