For 20 years, cheated investors have been waiting for compensation for overpriced Deutsche Telekom shares.
After an unprecedented series of processes, a solution is now emerging.
Frankfurt / Main - Can one of the largest and most protracted investor protection lawsuits in Germany be ended with a settlement? This question is being dealt with at the Frankfurt Higher Regional Court, which this Tuesday (11.00 a.m.) is again negotiating the so-called third IPO of Deutsche Telekom AG in 2000. Around 16,000 small shareholders felt disappointed at the time and sued for reimbursement of their exchange losses, which they said added up to around 80 million euros. The lawsuits filed with the Frankfurt Regional Court since 2001 have been merged into a model case, which, however, has not yet been legally concluded. The Federal Supreme Court found a serious error in the sales prospectus for the share.
A proposal is on the table that is supported by both influential plaintiffs and defendants, as the OLG has already announced in advance. The defendants are Deutsche Telekom AG, the Federal Republic of Germany and the state bank KfW. The settlement is to be offered to the individual plaintiffs by June 30, 2022, with the approval of the OLG. In the opinion of the lawyers, a comprehensive comparison that is binding for everyone is not possible. The shares entered the market in June 2000 at a starting price of EUR 66.50. The all-time high of 103.50 euros was several months ago. Today the paper is quoted at around 17 euros and thus not too far from the original issue price in 1996, i.e. 28.50 D-Marks (14.57 euros).
According to the settlement proposal, which has not yet been resolved, the purchase price is to be reimbursed to those investors who bought paper between May 27 and December 19, 2000 and who also always maintained their legal claims.
Dividends paid in the meantime and the current market value would be deducted, since the securities are to remain with the buyers.
The proposal also contains rules on legal costs and any interest that may be incurred.
Neither side have yet commented on the possible costs of the settlement.
(dpa)