May 11, 2020 / 2:01 PM / 23 days ago

Munich court to drop case against British short seller over Wirecard shares

FILE PHOTO: The headquarters of Wirecard AG, an independent provider of outsourcing and white label solutions for electronic payment transactions is seen in Aschheim near Munich, Germany April 25, 2019. REUTERS/Michael Dalder

MUNICH (Reuters) - A Munich court is planning to drop proceedings against British short seller Fraser Perring for suspected manipulation of the share price of German payment processor Wirecard (WDIG.DE), a court spokesman said on Monday.

The deal concludes an investigation that was launched in 2016 after the stock took a battering from short sellers after Perring’s Zatarra Research accused the company of misleading accounting and fraud, charges Wirecard has strongly denied.

The court reached the decision with the consent of prosecutors and the defense, the spokesman said.

The deal was contingent upon Perring making a payment to a charitable organization to the tune of a low five-digit thousand euro figure.

Perring confirmed that he had authorised his German counsel to make the payment to charity. “The payment has been made,” he said in response to a Reuters inquiry.

Last week, Wirecard revamped its management board amid continuing allegations including accounting irregularities and disclosure violations, which it denies.

Reporting by Joern Poltz and Doug Busvine; writing by Tom Sims; Editing by Michelle Martin

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