Case Spotlight: Daimler AG

CompanyDaimler AG
JurisdictionGermany
ExchangeFSE
IndustryAutomobile
ClaimsBreach of continuous disclosure obligations, and wilful misconduct
Relevant PartiesLaw Firm: Rotter Rechtsanwälte | Funder: AdvoFin AG
Law Firm: DRRT/TILP | Funder: Therium Capital Management Limited
Relevant PeriodJuly 10, 2012 – December 31, 2018 (DRRT/TILP)
September 26, 2015 – June 11, 2018 (Rotter)
Participation DeadlineJune 30, 2019 (soft) for DRRT/TILP
July 31, 2019 (soft) for Rotter

CASE BACKGROUND

In 2017, an article was published exposing alleged collusion amongst Germany’s largest automakers, including Daimler AG, for illegally installing “defeat device” software in millions of vehicles, in order to temporarily indicate lower Nitrous Oxide levels emitted by the vehicles during emissions tests. In December 2018, the Lower Regional Court of Stuttgart accepted a motion for model case proceedings (KapMuG) against Daimler. This was the first formal step towards collective redress for Daimler investors before the Higher Regional Court of Stuggart.

Two groups of organizers are now soliciting investors to join their recovery efforts. One includes DRRT (law firm/funder), TILP (German law firm), and Therium (funder); the other includes Rotter (German law firm) and AdvoFin (funder).

DETERMINING ELIGIBILITY & COSTS

Investors are eligible to participate in at least one of the actions if they acquired Daimler shares on or after July 10, 2012 and held those shares through either or both of two disclosure dates: June 11, 2018 and December 31, 2018.

In Germany, cases move forward via KapMug “model case” proceedings. The KapMug begins as an opt-in proceeding where claimants must register to secure their right to sue and right to any future settlement. At the time of settlement impacted investors who did not opt-in to the KapMug may be bound by the court’s decision but unable to recover (similar to failing to file a claim in a U.S. opt-out class action).

The proposed recovery efforts will be funded on a “no win, no fee” basis in accordance with the terms proposed by each organizer group. All the expenses, including the lawyers’ fees and cost to post the statutory bond or other security against adverse cost orders will be paid by the funder. If successful, the funder will be paid a contractual percentage success fee, plus reimbursement for legal fees and case costs from the settlement or judgment.

>> DOWNLOAD OUR GERMAN JURISDICTION PROFILE TO LEARN MORE

NEXT STEPS

If you decide to participate and would like to receive an eligibility analysis from one of the organizers, you must give FRT permission to anonymously share your anonymised trading data with them. If you have compensable losses and wish to register with one of the organizers, you must submit a law firm power of attorney and litigation funding agreement.

FRT will provide the registration documents upon request. If you have compensable damages and would like to discuss your rights with either or both of the organizers, FRT can arrange for that discussion.

Learn More

FRT has issued the following alerts to FRT Global Group Litigation clients:

  • Update Alert: June 2019
  • Full Alert: September 2018

For more information on this case or FRT Global Group Litigation service, please contact us at learnmore@frtservices.com.

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About FRT

SETTLED CLAIMS  I  PASSIVE GROUP  I  ANTITRUST  I  FUTURE CLAIMS  I  OPT-IN MONITORING  I OPT-OUT MONITORING

Founded in 2008, Financial Recovery Technologies (FRT) is a leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.

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