Former Chrysler investors, including major shareholder Kirk Kerkorian, have sued the world’s fifth biggest carmaker, claiming the acquisition was billed as a merger of equals, rather than a takeover, in order to keep the price down.
The suits were filed after DaimlerChrysler Chief Executive Juergen Schrempp told the Financial Times that he had always meant to relegate Chrysler to a division of the group.
DaimlerChrysler said in a statement that the plaintiffs had been seeking damages of $22 billion in the class action case pending at the U.S. District Court in Delaware. The settlement was subject to a definitive agreement and to court approval, the company said, adding that it would seek $220 million from its insurers.
“The decision to resolve this litigation was approved by the company’s supervisory board and enables the company to continue concentrating its resources on its business agenda,” it said.