The closely-watched case, which began in 2001 and is the first test case for
Latham & Watkins is defending Deutsche Telekom on the case, with former Clifford Chance litigator Bernd-Wilhelm Schmitz — now a partner with Latham in
The US-based law firm is acting opposite more than 900 law firms representing individual claimants. They allege that Deutsche Telekom misled investors with a series of misstatements in its prospectus during its initial public offering (IPO) in 1996, which overvalued its real estate assets.
The lead plaintiff in the test case, chosen by the
The largest single group of claimants, which comprises around 7,000 investors, is being represented by German independent Doerr Kuehn Plueck Makki & Thoeren.
The case is expected to go on for several years with some 17 hearings scheduled for the first round alone.
The German litigation reforms came into effect in November 2005 and are designed to improve corporate accountability by making it easier for investors to pool claims against companies.
