Freightliner, part of DaimlerChrysler, the parent company of Mercedes-Benz, has finally agreed a multi-million pound compensation deal with MAN over accounting irregularities at ERF which MAN acquired in 2000. The dispute was the subject of lawsuits in both the UK and the US, both of which MAN won, but now the £250m settlement brings an end to the protracted saga.
MAN had acquired ERF from Canadian truck maker Western Star which was itself taken over shortly afterwards by Freightliner.
After the ERF acquisition, it emerged that ERF's financial statements and thus its value has been severely and fradulantly manipulated and misrepresented.
VAT returns had also been falsified. In 2002, MAN sued Freightliner as Western Star's legal successor, for damages of around £300m. Lord Justice More-Bick ruled in MAN's favour in 2005, finding that Freightliner was liabhle for the fraud.
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