Press and News
Ad hoc release – Krones reaches settlements in US proceedings
The US company of the Krones Group, Krones Inc. in Franklin/Wisconsin (USA), and Krones AG, Neutraubling (Germany), have now settled the legal disputes that have been ongoing in the US since October 2008. Only one claim for legal fees remains pending. The proceedings concerned relate to claims for damages asserted by several American financial service providers, a group of hedge funds and a liquidator, and most recently investigations by the district attorney in Pennsylvania. The settlement agreed with the liquidator is still subject to formal approval by the insolvency court. The proceedings related to the financial scandal involving the bankruptcy of the US company Le-Nature’s.
Against the background of possible risks arising from proceedings in the US that might otherwise have dragged on for years, Krones decided to bring an end to the matter by concluding the settlements with the major plaintiffs, and reaching an agreement with the district attorney as well, at the same time.
The agreements involve settlement payments amounting to about USD 110 million to the various plaintiffs, plus a payment by Krones Inc. to the US Treasury amounting to USD 15 million relating to a discontinuation of the investigation. After factoring in the contribution from the relevant insurances, there remains a total net impact on Krones’ pretax earnings amounting to approximately USD 100 million. Of this sum, USD 47 million had already been charged against income in the preceding year. The result for the 2012 business year has accordingly been debited with an already-formed provision amounting to about USD 53 million. The possible risk arising from the pending lawsuit has already been taken into account.back