An investigation for investors in Wirecard AG (WCAGY, WRCDF) shares over potential securities laws violations by Wirecard AG (WCAGY, WRCDF) was announced.
San Diego, CA -- (SBWIRE) -- 06/29/2020 -- An investigation was announced concerning potential securities laws violations by Wirecard AG in connection with certain financial statements.
Investors who purchased shares of Wirecard AG (WCAGY, WRCDF), have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The investigation by a law firm focuses on whether a series of statements by Wirecard AG regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
Germany based Wirecard AG, a technology company, provides outsourcing and white label solutions for electronic payment transactions worldwide. Wirecard AG (WCAGY, WRCDF) reported that its annual Total Revenue rose from over $1.05 billion in 2016 to over $1.53 billion in 2017 and that its Net Income declined from $266.74 million in 2016 to $259.71 million in 2017.
On January 30, 2019, The Financial Times reported that a senior executive at the Company was suspected of using forged contracts in connection with several suspicious transactions. The article cited "[a]n internal presentation [that] described potentially fraudulent money flows at Wirecard," relating to "transactions [that] were ordered by Edo Kurniawan, who is responsible for the payment group's accounting in the Asia-Pacific region."
On June 18, 2020, Wirecard AG stunned investors by announcing the need to further delay publication of its financial results and revealing that about 1.9 billion euros ($2.1 billion) in cash has gone missing. Wirecard AG warned loans up to 2 billion euros could be terminated if its audited annual report, delayed for the fourth time, was not published by June 19.
Ernst & Young was unable to confirm the location of the cash in certain trust accounts, and there was evidence that "spurious balance confirmations" had been provided, Wirecard said in a statement on Thursday. That's about a quarter of the consolidated balance sheet total, Wirecard said. Wirecard's stock has fallen over 70% since the revelation.
On June 19, 2020, Wirecard announced its CEO, Markus Braun resigned effective immediate.
On June 23, 2020, it was reported that the former chief executive officer of Wirecard AG was arrested by Munich prosecutors. Wirecard faced further investigations as Germany's top financial regulator BaFin on Tuesday reported Wirecard AG to the prosecutors for alleged market manipulation.
Shares of Wirecard AG (WCAGY, WRCDF) declined to as low as $6.47 per WCAGY share, respectively $12.90 per WRCDF share on June 24, 2020.
Those who purchased shares of Wirecard AG (WCAGY, WRCDF) have certain options and should contact the Shareholders Foundation.
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