New Deminor investment recovery cases - in the process of being launched
Germany, November 2016
Porsche is a listed company holding the majority of Volkswagen AG’s (“VW”) ordinary shares (~52,2 %). As from 2009 VW sold around 11 million cars worldwide with the installation of so-called “defeat devices” aimed at manipulating emissions testing in clear violation of US (and other) environmental standards. When the Notice of Violation issued by the United States Environment Protection Agency (“EPA”) against VW was published on September 18th, 2015 Porsche’s preferred share price dropped by more than 30%. The share price has not recovered yet. It is likely that a model proceeding in Germany will be launched before the Higher Regional Court of Stuttgart to decide on the most relevant questions regarding Porsche’s liability. This model proceeding may open the way to harmed investors who at this stage (due to the unforeseeable legal situation) do not want to actively file claims against Porsche. As an alternative, investors may register their claims to secure their rights and eventually – under certain circumstances – participate in future settlement negotiations. Also, in case of a positive outcome of the model proceeding investors can then separately file a lawsuit against Porsche. In case such model proceeding is actually launched, Deminor proposes investors to jointly register their claims in order to protect their rights against Porsche. The deadline to register in this case is March 15th, 2017.
Denmark, July 2015
Deminor invites investors to join a group action aimed at seeking a recovery of losses suffered on their investments in shares of OW Bunker.
On 7 November 2014, only 8 months after its IPO in March 2014, Danish fuel supplier OW Bunker filed for bankruptcy. Due to its failure, OW Bunker’s shareholders suffered a (near to) full loss on their investments. According to OW Bunker its demise was mainly caused by huge losses arising from a serious fraud at the level of its Singapore-based subsidiary Dynamic Oil Trading and from severe problems with its internal “risk management”. Internal investigation performed by Deminor however resulted in the discovery of numerous irregularities surrounding OW Bunker’s IPO and the period after the IPO.
Deminor proposes impacted investors to defend their interests and to seek recovery for the losses they suffered on their investments in OW Bunker. Eligible Investors subscribed shares in the IPO and/or investors that purchased OW Bunker from opening of business on 20 March 2014 up until 7 November 2014 (until the bankruptcy order was announced). OW Bunker shares traded on the Nasdaq OMX Copenhagen A/S and have DK0060548386 as ISIN.
Japan, May 2015
Deminor is syndicating investors on Toshiba Corporation (Japan). Following a review carried out by an independent panel of investigators, Toshiba acknowledged on July 21st, 2015 that it artificially inflated its pre-tax profits by JPY 152 bn (USD 1.2 bn) over a period of seven years starting in 2008, which corresponds to approximately 25% of its reported profits during the same period. Since the first announcement made by the company in relation to its accounting practices in April 2015, the stock price lost more than a quarter of its value and has not materially recovered since. The independent committee found that the accounting fraud was part of a deliberate scheme - with the involvement of senior management all the way up to the CEO - set up to systematically over-inflate profits in order to hide the downfall of revenues caused by various business developments. Toshiba admitted the wrongdoing. Since it is established that 25% of reported profits were fictitious as from April 1st, 2008 (i.e. beginning of the 2008 fiscal year in Japan) until and including May 8th, 2015 (i.e. the last trading day preceding the announcement made by Toshiba after the market was closed that it found some accounting irregularities and that accounts may have to be restated) it can be concluded that investors who purchased shares on the Tokyo Stock Exchange during this period were misled about the company’s fair value.
Should you have any questions, please contact Edouard Fremault (firstname.lastname@example.org).
United Kingdom, March 2015
Deminor invites investors to join a group action aimed at seeking a recovery of losses suffered on purchases of ordinary shares of Tesco PLC. The action will be brought before the English courts. The action stems from Tesco’s admission that it overstated past profits due to an accelerated recognition of income and deferral of costs. Investors having purchased shares of Tesco PLC and who have not sold all of those shares during the Relevant Period are eligible to join the action. The Relevant Period runs from April 17, 2013 to September 21, 2014 (both dates included). Interested investors are invited to contact Edouard Fremault (Edouard.Fremault@deminor.com) or Jean-Philippe Timmermans (Jean-Philippe.Timmermans@deminor.com).