Recent Securities Litigations
WIRECARD AG UNSP/ADR (US TRADING VENUE: WCAGY)
According to the Complaint, Wirecard, a technology company, purports to provide outsourcing and white label solutions for electronic payment transactions worldwide.
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) for the period spanning from 2015 to 2018, a senior Wirecard executive in Singapore had been accused of forging and backdating contracts, including falsifying accounts and money laundering; (2) an external law firm commissioned to investigate Wirecard’s Singapore office had reportedly found evidence of “serious offences of forgery and/or of falsification of accounts”; (3) Wirecard had downplayed weaknesses in its internal controls over financial reporting and failed to disclose the true extent of those weaknesses; and (4) 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.
On May 6, 2019, the Court issued an Order appointing Lead Plaintiff and Lead Counsel. Lead Plaintiff filed an amended Complaint on February 14, 2020. Defendants filed a Motion to Dismiss the amended Complaint on March 13. On April 15, the Court issued an Order denying Defendants’ Motion to Dismiss.