In the aftermath of falling stock prices of the Daimler AG due to the use of defeat devices, international investors should register their claims at a class action in Germany. While the chairman of the board, Mr. Zetsche, published a statement on 26th September 2015, that defeat devices were not used by Mercedes Benz, the company had to admit the opposite in 2018. On 11th June 2018 the German Ministry of Transport confirmed, that several models of Mercedes Benz (i.e. Vito, C 220d) used a defeat device, and therefore had to be taken out of the market.
Given these facts, legal claims can be addressed to the Daimler AG with respect to the failure of releasing a shareholder notice in 2015. The statements of the chairman should not be in accordance with the obligations against market abuse. Legal action can be pursued by the shareholders of the Daimler AG under the German Securities Tradings Act (WpHG) and the European regulation against market abuse (MAR).
Any liability of the Daimler AG under the German Securities Tradings Act results in several legal consequences. Shareholders have the possibility to reverse their transactions and therefore minimize the losses, which occurred in 2018.
The German securities law enables international shareholders to register their claims under a procedure, which is similar to a class action under the Kapitalanleger-Musterverfahrensgesetz (KapMuG). This procedure constrains the limitation period of only 12 months and has the advantage of a limited litigation risk. This class action is expected to commence in 2020 before the Intermediate Court of Stuttgart in Germany.
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