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Court decides: BaFin is not liable for Wirecard losses!
Krefeld: OLG rejects a Wirecard shareholder's claim for damages against Bafin. Important decisions and backgrounds.
Court decides: BaFin is not liable for Wirecard losses!
A shock for many investors: A small shareholder from Krefeld was rejected by the Düsseldorf Higher Regional Court in her claim for damages against the Federal Financial Supervisory Authority (Bafin). According to [cash-online.de](https://www.cash-online.de/a/wirecard-aktionaerin-scheitert-vor-gericht-mit- SchadenssatzDemand-an-bafin-702042/), the appeal of the plaintiff, who had suffered heavy losses due to Wirecard's insolvency, was rejected. The court found that Bafin could not be accused of any wrongdoing and pointed out that there was no connection between the authority's actions and the damage caused.
The dispute revolves around a ban on short selling and a criminal complaint that Bafin brought against journalists from the “Financial Times” because they had drawn attention to irregularities at Wirecard. The plaintiff felt that these actions led her to buy more shares. But the court disagreed. It viewed the decision to impose the short-selling ban as justifiable and found the criminal complaint against the journalists to be legal, since Bafin was obliged to act in the event of suspicion.
Background to the Wirecard scandal
What is behind the big Wirecard scandal? bpb.de gives us a deep insight: Founded in 1999, Wirecard experienced a rapid rise and became one of the most valuable companies in the DAX in 2018. But this appearance was very deceptive. In the summer of 2020, the company collapsed when it became known that 1.9 billion euros in escrow accounts were considered untraceable. We are talking about the biggest fraud scandal in Germany, which drove thousands of investors to ruin.
Back in 2015, journalist Dan McCrum uncovered irregularities in the “Financial Times” that pointed to the company’s questionable practices at an early stage. Despite certain warning signs - such as a police raid in Singapore in 2019 due to forged contracts - the company experienced an almost unbroken rise until it finally went bankrupt.
Legal dispute and the role of Bafin
Bafin, which is responsible for monitoring the financial markets, is also under pressure. Despite her efforts, such as special audits in 2017 and 2019, she was accused of failure, according to reporting on tag24.de. The regulatory measures, such as the short selling ban, were ultimately not enough to prevent the disaster. Investors are now increasingly demanding clarity and responsibility from regulators who may have given the wrong impression through their actions.
The legal dispute over the claims for damages continues for the time being. Since the appeal was not permitted by the court, the plaintiff has to go through the Federal Court of Justice. However, he has already dismissed similar lawsuits from other Wirecard shareholders. The uncertainty remains as the legal follow-up to the scandal continues at full speed.
The significance of this case highlights the importance of sound financial supervision. Bafin itself has also responded to the turbulent period by strengthening its own rules and passing the Act to Strengthen Financial Market Integrity (FISG) in order to avoid such incidents in the future.