Wirecard Investors Sue Bafin Over Failure to Spot Scandal (1)

Germany’s BaFin was sued by Wirecard AG investors who say the regulator turned a blind eye widespread evidence of an accounting scandal that led to the company’s collapse.

Lawyer Andreas Tilp, who filed the suit in Frankfurt, said the regulator should have been aware of the financial problems engulfing the payments processor early last year.

Prosecutors arrested former Wirecard Chief Executive Officer Markus Braun a second time this week over allegations the company covered up massive losses by inflating the balance sheet with fake assets. Regulators and prosecutors have been criticized for ignoring media reports about the company’s financial ...