Deutsche Telekom AG (DTE) is facing a second mass shareholder damage case over allegations the company misled investors when it sold shares.
About 150 investors are suing over Deutsche Telekom’s second share sale, done in 1999, arguing the company made false statements in its prospectus, including wrong information about the value of its real estate, Ingo Noehre, a spokesman for the Frankfurt Higher Regional Court said in an e-mailed statement. The tribunal held a hearing in the case today and judges scheduled a ruling for May 22.
Last year, Deutsche Telekom won dismissal of a case bundling suits by more than 16,000 shareholders over the prospectus issued for a 13 billion-euro ($17 billion) share sale in 2000. The shareholders, who mostly held small stakes, were seeking about 80 million euros in compensation and argued the sales prospectus contained dozens of mistakes. That case is now pending on appeal in Germany’s top civil court.
Deutsche Telekom spokesman Nico Goericke rejected the allegation, adding that the prospectus was complete and correct. The same judges hearing the new case have ruled in favor of Deutsche Telekom in the earlier case, where the arguments were for the most part identical, he said in an e-mailed statement.
Today’s case is: OLG Frankfurt am Main, 23 Kap 2/06.
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