Gerresheimer’s Shareholders Prepare Legal Action as Accounting Scandal Widens

Gerresheimer faces an accounting scandal, shareholder lawsuits, and regulatory probes, but a stock rally and creditor relief offer temporary stability.

The German pharmaceutical packaging group Gerresheimer is navigating a deepening crisis on multiple fronts. While its stock has staged a sharp recovery in recent weeks, the company remains entangled in a serious accounting scandal that has drawn the attention of regulators, auditors, and now shareholder activists.

Shares in the Düsseldorf-based company surged roughly 27 percent over the past month, closing at €24.54 on Thursday. The rally pushed the stock above its 100-day moving average, a technical milestone that suggests some investor confidence is returning. However, the market’s optimism stands in stark contrast to the fundamental challenges facing the business.

At the heart of the turmoil are so-called bill-and-hold transactions, where Gerresheimer recognized revenue for goods that had not yet been shipped. An independent investigation confirmed systematic violations of International Financial Reporting Standards (IFRS), with the irregularities amounting to €35 million in revenue and €24 million in adjusted operating profit. The BaFin financial regulator has since identified additional problems, including incorrectly reported lease liabilities and unrecognized impairment charges in the Advanced Technologies segment.

Legal Action Against Former Executives

The German Association for the Protection of Shareholders (DSW) is now examining claims for damages against former CEO Dietmar Siemssen and ex-finance chief Bernd Metzner. The supervisory board’s audit committee is also under scrutiny. According to the DSW, the clearer the factual picture becomes, the more likely it will engage a litigation funder to pursue the case.

The accounting scandal has already had significant consequences. Gerresheimer was ejected from the SDAX index in mid-April after failing to meet the Deutsche Börse’s deadline for submitting its annual financial statements. The company now plans to publish its audited 2025 annual report in June, followed by its half-year results on July 14.

Regulatory Heat on KPMG

The audit oversight body APAS has launched proceedings against KPMG, which had issued an unqualified audit opinion for Gerresheimer’s 2024 financial statements despite the errors. The BaFin has also expanded its own investigation, adding to the regulatory pressure on both the company and its former auditor.

Creditors Grant Breathing Room

Despite the turmoil, Gerresheimer has secured vital financial flexibility. Holders of 96 percent of the company’s €870 million in Schuldschein loans agreed to extend maturities until the end of September 2026. Banks have also temporarily waived key loan covenants related to leverage ratios, providing a crucial lifeline as management works to stabilize the balance sheet.

Centor Sale and Rejection of Takeover

To repair its finances, Gerresheimer is pushing ahead with the sale of its US subsidiary Centor. Investment bank Morgan Stanley is managing the process and has already attracted a double-digit number of interested parties. The company expects to complete the transaction within the current year.

An external rescue is off the table for now. Gerresheimer rejected an informal takeover offer from US rival Silgan at €41 per share in April. Management has opted to pursue a turnaround independently, and talks between the two companies have reportedly ceased.

Operational Targets Remain

Despite the crisis, the management is sticking to its medium-term targets. For 2026, Gerresheimer continues to forecast revenue of up to €2.4 billion and an adjusted operating margin of around 18 percent. The company’s annual general meeting, originally scheduled for June, has been cancelled as the group focuses on resolving its accounting issues.

On a 12-month basis, the stock remains down nearly 60 percent, underscoring the scale of the challenge ahead. The coming weeks will be critical as the company delivers its audited accounts and provides the market with its first full picture of the scandal’s financial impact.