Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of investors of the American Depositary Receipts (“ADRs”) of Wirecard AG (“Wirecard” or the “Company”) (OTC: WCAGY and OTC: WRCDF) to determine whether the Company engaged in securities fraud or other unlawful business practices.
On July 7, 2020, a class action lawsuit was filed in United States District Court alleging that 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.
On June 19, 2020, Bloomberg reported that “Wirecard’s lenders are demanding more clarity from the company in return for the extension of almost $2 billion in financing after it breached terms on the loan, people familiar with the matter said.” Further, according to Bloomberg, “[a]t least 15 commercial banks who have lent to Wirecard, including Commerzbank AG and ABN Amro, are in hectic negotiations about the steps to take after the German payments company said on Thursday it’s unable to release its annual report because it can’t locate 1.9 billion euros in cash ($2.1 billion) . . . .”
On this news, Wirecard’s stock dropped significantly, thereby injuring investors.
Wirecard investors who purchased, or otherwise acquired, the Company’s American Depositary Receipts between August 17, 2015 and June 24, 2020, both dates inclusive (the “Class Period”), and suffered losses greater than $50,000 are encouraged to complete Kehoe Law Firm’s Securities Class Action Questionnaire or contact Kevin Cauley, Director, Business Development, (215) 792-6676, Ext. 802, [email protected], to discuss the securities investigation or potential legal claims.