Germany’s Bilfinger SE said it will pursue lawsuits against its former executives for an estimated amount to about $123 million.
Bilfinger said in the terse statement that its Supervisory Board of Bilfinger SE resolved to assert claims for damages against former members of the company’s Executive Board. This relates to all former members of the Executive Board in office from 2006 to 2015 but who joined the Executive Board prior to 2015.
The company said the Supervisory Board took this decision on the basis of findings from the investigation it initiated in March 2016.
The former members of the Executive Board are accused of breaches of duty in the implementation of an orderly compliance management system. In the view of the Supervisory Board, some former members of the Executive Board also breached their duties in connection with M&A projects in the past.
According to the current provisional calculation, the amount of damages recoverable by Bilfinger as a result of these breaches is in the low three-digit million euro range. The precise amount of the damage claims and to what extent these can actually be asserted has not yet been determined at this time. There has also been no decision regarding which former members of the Executive Board damage claims should be asserted against and in which specific amount.
The current Executive Board of Bilfinger SE has now initiated an investigation to determine whether any members of the Supervisory Board may have breached their duties in connection with the aforementioned facts.
It would be recalled that Bilfinger was a majority owner in Nigeria’s Julius Berger before selling its entire stake to local shareholders.