Recent Securities Litigations
WIRECARD AG UNSP/ADR (US TRADING VENUE: WCAGY)
According to the Complaint, Wirecard is a technology company which purports to provide outsourcing and white label solutions for electronic payments worldwide. The Company operates in three segments: Payment Processing & Risk Management, Acquiring & Issuing, and Call Center & Communication Services.
The Complaint alleges Defendants made false and/or misleading statements and/or failed to disclose that: (1) Wirecard overstated its cash balances during the Class Period, falsely claiming €1.9 billion of cash in a trust account that was missing; (2) Wirecard overstated its financial results during the Class Period, including revenue and EBITDA; (3) Wirecard did not have adequate risk management or countermeasures; (4) Wildcard’s external auditor failed to audit Wirecard 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.