On July 20, 2016, Labaton Keller Sucharow was appointed as lead counsel in this securities class action against one of Germany’s “Big Three” car makers, Daimler AG.
The action alleges that Daimler AG made false and misleading representations concerning its characterization of Mercedes-Benz BlueTEC diesel engine vehicles as being “clean” and environmentally friendly, and whether those vehicles used defeat devices. In real world driving scenarios, Mercedes-Benz vehicles emitted much higher levels of nitrous oxide than permitted under applicable emissions testing regulations.
On September 21, 2015, Transport & Environment published an article that compiled emission data indicating that certain Mercedes-Benz vehicles potentially produce illegal levels of emissions, signaling the presence of defeat devices. On this news, the price of Daimler ADRs fell approximately 7 percent from its previous closing price on September 22, 2015. The fallout from Transport & Environment’s exposure of Mercedes-Benz’s use of defeat devices led to a consumer class action lawsuit filing and regulatory investigations by the EPA and DOJ, all accompanied by additional share price drops.
The amended consolidated class action complaint was filed on October 11, 2016. The defendants filed two motions to dismiss (for failure to state a claim and lack of personal jurisdiction), and lead counsel has filed opposition briefs. In May 2017, the court denied the motion to dismiss for personal jurisdiction in its entirety and denied in part the motion to dismiss for failure to state a claim. In September 2017, the Department of Justice received a stay of discovery in the case due to a pending investigation. In June 2018, the court issued an order allowing for a partial lifting of the discovery stay.
The case is Vancouver Alumni Asset Holdings, Inc. v. Daimler AG, No. 16-cv-2942 (C.D. Cal.). Labaton Keller Sucharow represents the lead plaintiff Public School Retirement System of the School District of Kansas City, Missouri. The defendants are Daimler AG, Mercedes USA, and certain individual defendants.
The Parties agreed, in principle, to a settlement in the amount of $19 million subject to the negotiation of a mutually acceptable Settlement Term Sheet and long form stipulation of settlement and completion of additional due diligence to confirm the reasonableness of the Settlement. The Settlement Term Sheet was executed by the Parties on February 20, 2020 and the Stipulation and Agreement of Settlement was executed on April 20, 2020. The Court entered preliminary approval of the Settlement on September 22, 2020.
Submit Claim Form – Extended Deadline
If you purchased or otherwise acquired Daimler American Depository Receipts and/or Global Registered Shares, in the United States, during the period from February 22, 2012 through April 21, 2016, inclusive (the “Class Period”), you may be entitled to a payment from a class action settlement. To be eligible for a payment, you must submit a Claim Form to the Claims Administrator by February 7, 2021.
Settlement Hearing
The Settlement Hearing was held on December 14, 2020 at 1:30 p.m. and the court approved the Settlement and Plan of Allocation, and awarded attorneys' fees and expenses.
If you have questions about the Settlement, please contact Labaton Keller Sucharow at settlementquestions@labaton.com or 1-888-219-6877, contact the Claims Administrator at (877) 883-9246, or visit the website dedicated to the Settlement, www.DaimlerSecuritiesSettlement.com.
