STUTTGART (dpa-AFX) - The legal dispute over alleged emissions violations by Mercedes-Benz diesel vehicles has been simmering for years. Now, former Daimler CEO Dieter Zetsche is set to appear as a witness before the Stuttgart Higher Regional Court on Tuesday, as a spokesperson confirmed. Zetsche was at the helm of what is now Mercedes-Benz Group AG during the period of the alleged emissions fraud. The diesel scandal first came to light in 2015 following incidents involving Volkswagen.
Numerous investors accuse the publicly traded Mercedes-Benz Group AG of failing to inform them in a timely manner about the emissions issue—and are therefore seeking compensation for losses now totaling 1.25 billion euros. Since autumn 2023, the Higher Regional Court has been hearing a model lawsuit against the automaker.
According to the court, the former top executive Zetsche is to be questioned on whether the then-management board made a strategic decision to circumvent EU emissions standards and, in doing so, allegedly installed illegal defeat devices between 2012 and 2018. The Stuttgart-based company has consistently denied any targeted manipulation of emissions technology using cheat software, as was used for years at VW.
Investors Accuse Mercedes-Benz of Deception
The lead plaintiff in the case—a private investor—is represented by the Tilp law firm. According to the Tübingen-based attorneys, a large number of private and around 200 institutional investors have joined the proceedings.
The plaintiffs accuse Mercedes-Benz Group AG of violating its capital market obligations. The company is alleged to have concealed from the capital market the use of illegal defeat devices in its diesel vehicles, along with the associated risks and costs, thereby misleading investors about the true situation.
Between July 10, 2012, and June 20, 2018, the share price of the former Daimler AG fell from over 90 euros to below 60 euros. The losses resulting from the drop in share price are therefore the subject of the lawsuits.
A company spokesperson stated: "We continue to maintain that we have duly fulfilled our capital market disclosure obligations." The claims, she said, are unfounded.
Hefty Fine, But No Investigation Against the Board
After the scandal became public, the Stuttgart public prosecutor's office launched investigations. Proceedings were initiated against two caseworkers and two team leaders at the carmaker. Several penalty orders were issued.
Ultimately, in 2019, the company was fined 870 million euros. However, this was not for illegal defeat devices, but for negligent breach of supervisory duties within the company.
No Investigations Against Board Members
There were never any investigations against board members. The company spokesperson also pointed this out. She said: "A comprehensive independent investigation commissioned by the supervisory board found that there are no claims against board members." The US Department of Justice ended its investigations against Mercedes-Benz in 2024.
The proceedings before the Higher Regional Court, based on the Capital Investors Model Proceedings Act, consolidate numerous individual investor lawsuits filed with the Stuttgart Regional Court. The model lawsuit can be negotiated on behalf of all claimants, and the outcome can later be applied to them.
In addition to former CEO Zetsche, another former board member as well as other employees and former staff are summoned for the three-day evidence hearing./ols/DP/jha
