Shareholder sues DaimlerChrysler for lost stock returns

[JURIST] A lawsuit was filed in Germany Thursday against DaimlerChrysler [corporate website] by a shareholder who claims he was "short-changed" when the company failed to promptly disclose the early resignation [BBC report] of CEO Juergen Schrempp. The shareholder is arguing that if the information was made public when the decision was first made, rather than five weeks later, he could have made a better return on his stock investment since shares went up by over 10 percent upon the announcement. His lawyers claim their client sold his DaimlerChrysler shares a mere 90 minutes before Schrempp's resignation announcement, allowing him to make only 36.50 euros (US $45.25) on the deal. This is the first lawsuit to be filed as the result of Schrempp's decision to leave the company, but several DaimlerChrysler executives are currently under investigation for insider trading. AFP has more. From Germany, Deutsche Welle has local coverage.

 

About Paper Chase

Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

© Copyright JURIST Legal News and Research Services, Inc., 2013.