Wirecard Shares Drop After New Report on Law Firm's Findings
Comment of the Day

February 01 2019

Commentary by Eoin Treacy

Wirecard Shares Drop After New Report on Law Firm's Findings

This note by Stefan Nicola for Bloomberg may be of interest to subscribers. Here it is in full:

Wirecard AG shares fell as much as 16 percent Friday after a report that a law firm found evidence
indicating alleged forgery at the German payment company’s Singapore office.

An external law firm commissioned by Wirecard found evidence indicating “serious offenses of forgery and/or of falsification of accounts,” the Financial Times wrote Friday, citing the law firm’s report. The Rajah & Tann lawyers identified potential civil and criminal violations in Singapore, Hong Kong, India, Malaysia, and Germany, the newspaper said.

A Wirecard spokesman denied the report in an emailed statement. Wirecard earlier this week denied claims made in a story by the Financial Times that alleged executive fraud originating at the Singapore office, fueling concerns about the fast-growing company’s business practices that knocked as much as 25 percent off its value on Wednesday.

Eoin Treacy's view

Wirecard has been one of Europe’s few true technology success stories over the last few years so it is quite disappointing that it has succumbed to a worrying trend of German corporate malfeasance. This is the latest in a long line of governance problems at some of Germany’s largest companies and puts another dent in the country’s façade of corporate excellence.

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