Court orders former Wirecard executives to pay €140m

5th Sep 2024 12:29

(Sharecast News) - Three former executives of Wirecard, including chief executive Markus Braun, have been ordered to pay €140m in damages by a Munich court.

Insolvency administrator Michael Jaffe had claimed in a civil case that the executives had violated their duties by approving loans to a Singaporean company.

The court agreed, ruling on Thursday that Braun - along with former chief financial officer Alexander von Knoop and former chief product officer Susanne Steidl - were personally liable for losses from the unsecured loans.

All three were ordered to pay €140m in damages, plus interest.

According to the Financial Times, the court found that the executive board had violated its professional duties by not insisting on collateral for loans, noting that the decision was "untenable and at odds with the duty of care of a prudent businessman".

It also ruled that former deputy chair Stefan Klestil was not be required to pay damages.

A spokesperson for Klestil told the FT: "Today's decision is an important step. It highlights that supervisory boards are ultimately powerless when, as in the case of Wirecard, executives choose not to follow the rules and deliberately bypass the board."

The judgement is not yet legally binding under German law, as it can still be appealed.

Wirecard collapsed in June 2020 following the discovery of a €1.9bn black hole in the accounts.

The civil case is separate to the ongoing criminal case against Braun - who denies all wrongdoing - and other former Wirecard executives.