New Deminor investment recovery cases - in the process of being launched
Germany, October 2015
Deminor invites investors to join a collective action aimed at seeking a recovery of losses suffered on purchases of ordinary and preference shares of Volkswagen AG. The action stems from Volkswagen’s admission on 20 September 2015 that it installed so-called ‘defeat devices’ in various car models sold in the United States as from 2009. This was followed by another admission on 22 September 2015 that the same device had been installed in 11 million cars worldwide. Furthermore, according to press reports, an employee alerted VW’s management about the manipulation of emission test already in 2011 and a supplier warned Volkswagen that use of the defeat devices in cars on road was illegal in 2007.
The company set aside a provision of 6.5 billion EUR to cover the costs of the scandal. The real cost of fines, recalls, and other directly and indirectly related costs may turn out to be much higher. Since the disclosures regarding the emissions scandal, the Volkswagen stock price has lost approximately 40%. Official documents released by US authorities show that VW already knew about the investigations as from mid-2014 and that the company admitted to the breaches on 3 September 2015. Yet VW informed the market only on 20 September 2015.
Deminor has conducted an in-depth analysis of the case in close cooperation with outside counsel and concludes that there are grounds for investors to seek a recovery of losses from Volkswagen.
Deminor has successfully concluded its syndication process for the Volkswagen case. Institutional investors who missed Deminor's deadline of 28 February 2016 and who are still interested in participating are invited to send an email to email@example.com. The final deadline for participation is August 31, 2016.
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).