October 29, 2015
ANNOUNCEMENT NO. 56
German Court dismisses GN's request to pursue
compensation for the German Cartel Office’s unlawful
prohibition
The German Federal Supreme Court has dismissed GN’s request to appeal the
decision by the Düsseldorf Court of Appeals from March 26, 2014. In the decision
from March 2014, GN’s claim for compensation against the German Federal Cartel
Office (FCO) was dismissed. The decision by the German Federal Supreme Court
implies that GN has no further legal possibilities to continue the claim for
compensation against the FCO despite the legally acknowledged fact that the FCO
unlawfully prohibited the sale of GN ReSound to Sonova in 2007. GN fundamentally
disagrees with the court that the FCO is not liable for their critical and erroneous
ruling that prevented the agreed and legitimate transaction between GN and
Sonova.
Since the FCO’s erroneous prohibition of the sale of GN ReSound to Sonova in
2007, GN ReSound has delivered a strong turnaround driven by efficient
restructuring and technological leadership. GN will continue to drive shareholder
value through execution of the 2014 – 2016 strategy: INNOVATION & GROWTH.
Following the decision by the German Federal Supreme Court, GN is liable for legal
costs, including a court fee, of up to EUR 2 million, which will impact the EBITA
guidance for 2015 for “Other” equivalently.
Background
On December 22, 2010, GN filed a claim of EUR 1.1 billion (approximately DKK 8.2
billion) as compensation for the significant loss imposed on GN and its shareholders
in relation to the FCO’s unlawful prohibition of the sale of GN ReSound to Sonova.
In February 2013, the Court of Cologne dismissed GN’s claim. The court
acknowledged that the prohibition of the sale was unlawful, and the FCO had
breached its duty but found that the unlawful prohibition did not result in liability
for the FCO.
GN disagreed with the decision by the court and decided to appeal the decision in
March 2013. The Düsseldorf Court of Appeals dismissed the case on the grounds
that the FCO had not acted negligent when they prohibited the sale.
For further information please contact:
Peter Justesen
Vice President – Investor Relations & Treasury
GN Store Nord A/S
Tel: +45 45 75 87 16