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Legal proceedings concerning damages related to the asphalt cartel: Lemminkäinen to pay damages at most worth 34 million Euros in capital
LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE 28 NOVEMBER 2013 AT 10:00 A.M. LEGAL PROCEEDINGS CONCERNING DAMAGES RELATED TO THE ASPHALT CARTEL: LEMMINKÄINEN TO PAY DAMAGES AT MOST WORTH 34 MILLION EUROS IN CAPITAL On 28 November, the District Court of Helsinki has given its decisions in the legal proceedings concerning damages related to the asphalt cartel. Of those 26 claims, where Lemminkäinen was the only defendant, Lemminkäinen has been ordered to pay a total of approximatel
LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE 28 NOVEMBER 2013 AT 10:00 A.M.
LEGAL PROCEEDINGS CONCERNING DAMAGES RELATED TO THE ASPHALT CARTEL: LEMMINKÄINEN TO PAY DAMAGES AT MOST WORTH 34 MILLION EUROS IN CAPITAL
On 28 November, the District Court of Helsinki has given its decisions in the legal proceedings concerning damages related to the asphalt cartel.
Of those 26 claims, where Lemminkäinen was the only defendant, Lemminkäinen has been ordered to pay a total of approximately EUR 15 million in capital amount to 25 plaintiffs.
In addition, the District Court gave its decisions concerning 13 other claims, where Lemminkäinen and other asphalt industry companies were defendants. Concerning these claims, the District Court ordered the defendants to pay a total of approximately EUR 19 million in capital amount to 10 plaintiffs. In these claims, Lemminkäinen's liability to pay is partly joint and several together with other defendants.
The defendants were also ordered to pay interests and legal expenses approximately EUR 20-30 million to 35 plaintiffs. Lemminkäinen's liability to pay interest and legal expenses is partly joint and several together with other defendants.
The claims against Lemminkäinen by the State of Finland and three municipalities were rejected.
Lemminkäinen will specify later the amount of the total damages, for which it is liable (capital, interests and legal expenses) according to the decisions of the District Court. Lemminkäinen will record the expenses caused by the damages in its fourth-quarter profit.
"We are disappointed with the decisions of the District Court to the extent the claims were accepted. We were, however, prepared also for this outcome. We have sufficient financing arrangements and liquid funds that will cover these damages. Our business activities and development of the company will continue as before," says Timo Kohtamäki, President & CEO of Lemminkäinen.
Lemminkäinen has as such deemed the claims for damages to be without foundation. Lemminkäinen will carefully study the decisions of the District Court. After this, the company will decide whether there are grounds for submitting an appeal against the decisions to the Court of Appeal. Lemminkäinen has a minimum of 30 days for submitting an appeal to the Court of Appeal of Helsinki. The company will announce its decision separately once it has been made.
In 2009 the Supreme Administrative Court ordered seven Finnish asphalt industry companies (Lemminkäinen, Valtatie, Skanska Asfaltti, NCC/ Interasfaltti, Rudus Asfaltti, SA-Capital and Super Asfaltti) to pay an infringement fine due to violations of competition legislation. The infringement fine imposed on Lemminkäinen was EUR 68 million.
The Finnish state and municipalities have considered that the restriction of competition increased the level of prices in the asphalt industry in 1994–2002 and caused damage to them. The main proceeding of the legal proceedings in the District Court of Helsinki concerning damages related to the asphalt cartel began in September 2012 and ended in April 2013. For Lemminkäinen, the decisions given today concerned the claims of 38 municipalities and the Finnish state, the capital amount of which amounted to a total of EUR 121 million.
In addition to the claims, which the District Court now decided on, 14 claims for damages are pending a main proceeding at the District Court of Helsinki. Their capital amounts to approximately EUR 8 million.
Timo Kohtamäki, President & CEO
tel. +358 2071 53263
Robert Öhman, CFO
tel. +358 2071 53515
NASDAQ OMX Helsinki
Together with our customers we create conditions that make living, working and travelling functional, safe and healthy. We operate in northern Europe and employ about 8,200 experts. In 2012, our net sales were about EUR 2.3 billion. Lemminkäinen Corporation’s share is quoted on NASDAQ OMX Nordic Exchange Helsinki. www.lemminkainen.com