Deminor case against Vestas 'pending before court'

DENMARK: A lawsuit brought against Vestas employees by disgruntled investors has moved closer to court with the exchange of court briefs.

Former Vestas CEO Ditlev Engel is a target of the case
Former Vestas CEO Ditlev Engel is a target of the case

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Deminor Recovery Services, which is representing the claimants, said that the case is now pending before the court, although no date has yet been fixed for the case to be heard.

The 87 shareholders are claiming an initial figure of DKK 80 million (EUR 11 million) in damages, down from the original claim of DKK 300 million.

Vestas has said that Deminor is basing its claim on a lawsuit filed in the US in March 2011 by a pension fund which claimed the company issued false information regarding its revenue and earnings.

Deminor partner Erik Bomans told Windpower Monthly that he believes that Vestas had a major shortfall of revenues versus its own guidance, especially in the year 2010, and that it "has not correctly informed investors about it".

The claimants believe this has affected share-price performance.

The case is being brought against former CEO Ditlev Engel, former chairman Bent Erik Carlsen and former chief financial officer Henrik Nørremark.

While Vestas is not at present mentioned as a co-defendant, the firm said it will still act to defend all of those named in the case.

In March 2013, an attempt by Deminor to force Vestas to appoint a scrutiniser to examine recent business decisions by the board was voted down at the company's AGM by 89.5% of shareholders.

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