NEW YORK - (NewMediaWire) - July 16, 2020 - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Wirecard AG ("Wirecard" or the "Company")(OTC: WCAGY, WRCDF) of the September 8, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Wirecard American Depository Receipts (“ADRs”) between August 15, 2015 and June 24, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/WCAGY. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
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The lawsuit has been filed in the U.S. District Court for the Eastern District of Pennsylvania on behalf of all those who purchased Wirecard ADRs between August 15, 2015 and June 24, 2020 (the "Class Period"). The case, Brown v. Wirecard AG et al., No. 20-cv-03326 was filed on July 7, 2020, and has been assigned to Judge Anita B. Brody.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Wirecard overstated its cash balances during the Class Period, falsely claiming €1.9 billion; (2) Wirecard overstated its financial results, including revenue and EBITDA; (3) Wirecard did not have adequate risk management or countermeasures; (4) Wirecard’s auditor failed to audit the Company in accordance with applicable auditing principles; and (5) as a result, defendants’ statements about Wirecard’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Specifically, after a series of Company statements starting on June 18, 2020, it was revealed that Wirecard AG's auditor Ernst & Young stated that no sufficient audit evidence could be obtained regarding €1.9 billion in several trust accounts’ cash balances included in the most recent consolidated financial statements. Then, on June 23, 2020, during market hours, CNN reported that the Company's former CEO, Markus Braun, was arrested “after a $2.1 billion hole exploded in [Wirecard’s] accounts.” The article further stated that “Munich prosecutors confirmed that Braun, Wirecard's former CEO, was arrested on suspicion of having inflated the digital payment company's balance sheet and sales through fake transactions in order to make it more attractive to investors and customers.”
On this news, Wirecard's WCAGY price fell from $58.50 per share on June 17, 2020 to a closing price of $1.74 on June 25, 2020: a $56.76 or a 97.02% drop. In the meantime, Wirecard's WRCDF price fell from $113.29 per share on June 17, 2020 to a closing price of $3.60 on June 25, 2020: a $109.69 or a 96.82% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Wirecard's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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