Vol 23 (2026) - Issue 2

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Wirecard Insolvency: German Federal Court of Justice Confirms Subordination of Shareholder Damages Claims to All Creditor Claims in Landmark Insolvency Ruling

Introduction
In its much-anticipated judgment of 13 November 2025 the German Federal Court of Justice (FCJ) held that in insolvency proceedings, the claims of shareholders who have a damages claim against the company are not to be treated pari passu with claims of unsecured creditors. With this landmark ruling, the FCJ brings an end to years of legal uncertainty, resolving the longstanding dispute between shareholders and creditors of Wirecard in favour of the latter.
In 2022, the court of first instance had ruled that claims by shareholders for damages in the Wirecard insolvency were subordinated to the claims of all other creditors. In 2024 this decision was overturned by the appellate court. Both rulings were highly controversial and widely debated.
On 13 November 2025, the FCJ4 brought the legal saga to a close, delivering the long-awaited judgment on the so-called 'issue of rank'. In its ruling, the FCJ unequivocally affirms that claims by shareholders for damages – even those arising from alleged fraud by the company which caused the shareholder to acquire the shares – do not rank pari passu with unsecured creditor claims. Such claims are so closely linked to the claimant's status as shareholder that, in insolvency proceedings, they are subordinated to those of ordinary insolvency creditors.