August 25, 2003
DaimlerChrysler offer $300 million to unhappy shareholders
Stuttgart, Germany/New York City, U.S.A – DaimlerChrysler has agreed to settle a class action case brought about by shareholders who alleged that the company mislead them into believing a company takevover was a merger.
Subject to a definitive settlement agreement and to Court approval, DaimlerChrysler will pay the class action plaintiffs U.S.$300 million. The plaintiffs’ initial claim was $22 billion. DaimlerChrysler has applicable insurance policies aggregating approximately $220 million, to which extent it will seek reimbursement of the settlement payment.
Although DaimlerChrysler believes that the class action is completely without merit, the company has agreed to a settlement, since the company believes a local jury could have reached a different conclusion.
The decision to resolve this litigation was approved by the company’s Supervisory Board and enables the company to continue concentrating its resources on its business agenda.
The settlement has no bearing on the Tracinda case, parts of which are still awaiting summary judgment. DaimlerChrysler believes all claims against it relating to the 1998 merger, including those in the Tracinda case, are without merit and the company remains committed to a vigorous defense of this case.