The Spanish Supreme Court ordered EY to pay €150,760.51 to three former Gowex shareholders. This follows an earlier ruling awarding €118,921 to four other investors. The decision highlights EY audit liability bankrupt Gowex rulings and holds financial advisors accountable for failing to uncover fraud.
Failure to Detect Accounting Fraud
Gowex provided free public Wi-Fi in major cities like Madrid and New York. It collapsed in 2014 after short-seller Gotham City Research exposed fake financial records created under CEO Jenaro García Martín.
EY served as the company's registered advisor on the Alternative Stock Market (MAB). The court ruled that EY acted negligently by failing to spot the fraud before the public collapse. Industry observers following corporate developments can read the latest tech industry news.
Supreme Court Reaffirms Third-Party Liability
The Spanish Supreme Court EY Gowex ruling sets a clear legal precedent for financial advisors and auditors. The court affirmed that investors who bought shares based on falsified data deserve compensation from responsible advisory entities.
This EY Gowex lawsuit verdict demands higher financial transparency across European tech ventures. Legal, financial, and tech specialists seeking new opportunities can browse tech jobs in Portugal.
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