Wirecard insolvency: Federal Court of Justice confirms subordination of shareholder damages claims to all creditor claims in landmark insolvency ruling

In its much-anticipated judgment of 13 November 2025 the German Federal Court of Justice (FCJ) held that in insolvency proceedings, shareholders’ damages claims 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 long-standing dispute between shareholders and…

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MCA to examine litigation funding for PUFE transactions under insolvency

The Ministry of Corporate Affairs (MCA) will examine litigation funding for preferential, undervalued, fraudulent, and extortionate (PUFE) transactions under the insolvency regime to improve recoveries, the ministry told a parliamentary standing committee in a written reply. “Litigation funding for PUFE transactions will be examined in light of global best practices and refined through detailed consultation…

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