The US company of the Krones Group, Krones Inc., Franklin/Wisconsin (USA), and Krones AG, Neutraubling (Germany) have taken a first step towards resolving the legal disputes that have been ongoing since October 2008, triggered by claims for damages by several American financial service providers, a group of hedge funds and a liquidation trustee.
The lawsuits are related to the financial scandal involving the bankruptcy of the US company Le-Nature´s, whose former directors have meanwhile been convicted of fraud. In 2005/2006, Krones produced, delivered and successfully commissioned filling lines representing a contract volume of approximately 100 million US-dollars for the Le-Nature’s facility in Phoenix/Arizona (USA).
Several plaintiffs have entered into a mediation process with Krones, to explore options for ending the proceedings. Although in Krones’ view the opposing parties’ demands are unfounded, Krones’ US attorneys have advised to continue mediation, also with regard to the special risks entailed by the American legal system.
Initial assessments from the mediation process indicate that the possibility cannot be ruled out that potential settlements developing from the mediation could have an adverse effect on the Krones Group’s profit situation, quantified as a low-to-medium double-figure million US-dollar amount.
The US company of the Krones Group, Krones Inc., Franklin/Wisconsin (USA), and Krones AG, Neutraubling (Germany) have taken a first step towards resolving the legal disputes that have been ongoing since October 2008, triggered by claims for damages by several American financial service providers, a group of hedge funds and a liquidation trustee.The lawsuits are related to the financial scandal involving the bankruptcy of the US company Le-Nature´s, whose former directors have meanwhile been convicted of fraud. In 2005/2006, Krones produced, delivered and successfully commissioned filling lines representing a contract volume of approximately 100 million US-dollars for the Le-Nature’s facility in Phoenix/Arizona (USA). Several plaintiffs have entered into a mediation process with Krones, to explore options for ending the proceedings. Although in Krones’ view the opposing parties’ demands are unfounded, Krones’ US attorneys have advised to continue mediation, also with regard to the special risks entailed by the American legal system. Initial assessments from the mediation process indicate that the possibility cannot be ruled out that potential settlements developing from the mediation could have an adverse effect on the Krones Group’s profit situation, quantified as a low-to-medium double-figure million US-dollar amount.
The comPETence center provides your organisation with a dynamic, cost effective way to promote your products and services.
magazine
Find our premium articles, interviews, reports and more
in 3 issues in 2024.
