Key Takeaways:
The Law Offices of Frank R. Cruz announced a securities fraud investigation into Wise Group plc on June 8, the third law firm to open a probe after the payments processor's stock fell 5.25% on a money laundering report.
"Wise faces a potential criminal summons in Brussels following an investigation into anti-money laundering compliance failures," the firm said in a statement. The company disclosed on June 1 that it was "working with the Brussels prosecutor to respond to queries about its business."
The Wall Street Journal reported on June 1 that Brussels' public prosecutor is close to summoning Wise Group before a criminal court over potential money laundering offenses. Shares of the London-based payments company closed at $12.10 that day, down $0.67 from the prior session.
Rosen Law Firm and the Schall Law Firm have also opened investigations into whether Wise issued materially misleading business information to investors. The probes focus on the period before the June 1 disclosure, when Wise's statements about its anti-money laundering controls may have been inaccurate.
The investigations put Wise in a precarious position as it navigates both a potential criminal proceeding in Europe and civil securities claims in the US. The company has not yet commented on the law firm investigations. Investors who purchased Wise securities before June 1 may be eligible to join class action claims, with several firms offering contingency fee arrangements.
This article is for informational purposes only and does not constitute investment advice.
