A shareholder who acquires a controlling stake in a listed company must make, under certain conditions, a mandatory offer to acquire all outstanding shares. But what happens if the shareholder does not comply with that obligation? In a decision published last week, the Federal Supreme Court (Bundesgerichtshof) ruled on the open issue whether in such a scenario, the other shareholders would be entitled to damages. The court held that no claim for damages exists. Read More
Category: Securities Litigation
Volkswagen, Porsche and the Hedge Funds: It’s Hannover After All
Here’s the latest leg in the tour of Germany on which the Porsche claimants have embarked: The Braunschweig District Court (Landgericht) dealt with the claimants’ application to move the matter to Hannover today, and granted the motion. You may recall that for some claimants, this will be the third court dealing with the matter, and it looks like a safe bet that it will not be the last. Read More
Preventing Precedent: Legislative Action Expected
There is an increasing practice of corporate defendants, mainly from the fincancial services sector, to withdraw their appeal (Revision) before the Federal Supreme Court (Bundesgerichtshof) once it becomes clear that the court will find against them to avoid a judgment that could serve as precedent against them. As previously reported, this has led lawyers and consumer protection groups to advocate changes to the Code of Civil Procedure (ZPO). The Federal Supreme Court should be able to give judgment even if the underlying litigation has been terminated. Read More
Porsche/Volkswagen Takeover: Former Porsche CFO Sentenced For Credit Deception
In my view, the criminal action based on credit deception always had to be a side show in the great Porsche/Volkswagen saga. It was relatively insignificant, given the size of the securities and civil litigation, on which it has no impact, and the fact that the “victim”, BNP Parisbas, did not suffer a damage. Charges were brought nevertheless, and today, Härter was found guilty and sentenced.