German payment provider Wirecard CEO resigns amid accounting scandal

German payment service provider Wirecard said Friday that its CEO Markus Braun resigned with immediate effect.

The supervisory board of Wirecard said that James Freis Jr. had been appointed as member of the management board and interim CEO with “sole power of representation.”

On Thursday, Wirecard postponed the presentation of its 2019 financial year results for the fourth time, after auditor Ernst & Young (EY) refused to certify the company’s annual financial statements.

Shares of Wirecard collapsed immediately and temporarily fell by more than 60 percent on Thursday. On Friday before the resignation announcement, shares of Wirecard temporarily lost half of their value again, hitting a low at around 19 euros.

Wirecard AG said Friday that the company was in “constructive discussions with its lending banks with regard to the continuation of the credit lines and the further business relationship.”

Following the resignation, shares of Wirecard started to recover from their low and were trading at around 29 euros on late trading Friday.