The plaintiffs had asserted prospectus liability claims in connection with a bond issued by Scholz AG in 2012 and 2013 with a total issue volume of EUR 182.5 million.
Scholz AG was a well-established family-owned company that was operating worldwide in recycling and scrap metal trading; it is now a member of a Chinese group. The lawsuits were directed against Scholz AG’s former management board members, shareholders, and its legal successor, Scholz Holding GmbH.
In October 2018, Ellwangen Regional Court had already dismissed a collective claims lawsuit and numerous individual claims in the first instance. In July 2019, most of the appeals filed against that judgement were rejected in full by Stuttgart Higher Regional Court. In its rulings, the Higher Regional Court had also expressly held that there were no prospectus errors or other breaches of duty by the management board in connection with the bond issuance. The rulings therefore affirmed the defendants’ legal opinion in several respects. The Higher Regional Court had not allowed an appeal.
The plaintiffs subsequently filed non-admission appeals in five cases, including the collective claims lawsuit. These were now all dismissed in July 2021, rendering the judgements dismissing the actions legally binding.
In the first and second instances, Scholz AG’s former management board members and shareholders were represented by Heuking Kühn Lüer Wojtek, Düsseldorf, led by Dr. Andreas Urban, Managing Partner, and Sandra Kalthoff, Partner. In the appeal instance, the clients were represented by Dr. Reiner Hall.
Counsel to former management board members and shareholders of Scholz AG
Heuking Kühn Lüer Wojtek:
Dr. Andreas Urban (Managing Partner, Lead), Sandra Kalthoff (Partner), both Düsseldorf
Dr. Reiner Hall (Federal Court of Justice)
Counsel to Scholz Holding GmbH
Latham & Watkins LLP
Dr. Christoph Baus (Partner, Lead)
Stefan Patzer, both Hamburg
Dr. Thomas Winter (Federal Court of Justice)