Troubled media group EMTV is facing massive compensation claims from angry shareholders.
Munich lawyer Klaus Rotter announced that the first round of claims by about 100 shareholders would be presented next week, with potential damages standing at up to DM5 million ($2.4m).
Further claims will probably be made by other groups of shareholders later in the month, according to law firm Tilp & Kalberer which is awaiting the outcome of the initial claims. One such group, DSW, warned that “the prosecution could be the first step for a civil action” after more than 400 shareholders contacted it.
EMTV has had a disastrous few months. It suffered accounting errors in October, was forced to slash its annual profit target by 90% in December and is currently being investigated by state prosecutors for breaches of share trading law. Chairman Thomas Haffa has also been accused in German magazine Der Spiegel of selling DM40m worth of shares during a ‘lockup period’ without the authorisation of the company’s bankers.
News source: Financial Times, Handelsblatt (Germany)