DaimlerChrysler has agreed to settle a consolidated class action case pending in the United States District Court for the District of Delaware relating to the 1998 Daimler-Benz/Chrysler merger that created DaimlerChrysler.
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Subject to a definitive settlement agreement and to court approval, DaimlerChrysler will pay the class action plaintiffs $US300 million (about €275 million). The plaintiffs’ initial claim was $22 billion. DaimlerChrysler has applicable insurance policies aggregating €200 million, or approximately $220 million, to which extent it will seek reimbursement of the settlement payment.
Although DaimlerChrysler believes that the class action is completely without merit, the company has agreed to a settlement, since a local jury could have reached a different conclusion.
The settlement has no bearing on the Tracinda case, parts of which are still awaiting summary judgment. DaimlerChrysler believes all claims against it relating to the 1998 merger, including those in the Tracinda case, are without merit and the company remains committed to a vigorous defence of this case.
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