MAN has won EUR370m in damages from DaimlerChrysler’s US truck division, Freightliner. The damages relate to financial fraud committed at ERF, when MAN acquired the UK truck manufacturer from Canada’s Western Star in 2000. Western Star was acquired by Freightliner in 2001.
MAN discovered the false accounting after it had acquired ERF. In a statement MAN said that ERF’s value had been ‘severely and fraudulently manipulated and misrepresented. In 2002, MAN sued Freightliner as Western Star’s legal successor for damages of around GBP300m.
MAN had won actions in British and US courts related to the case, but was due to take them to higher courts. By reaching a settlement both parties avoid costly legal fees.
The settlement provides that Freightliner shortly pay an indemnity of GBP250m (EUR370m) to MAN.
