Mercedes 2002 Annual Report Download - page 89

Analysis of the Financial Situation |83
Litigation is subject to many uncertainties, and Daimler-
Chrysler cannot predict the outcome of individual matters with
assurance. It is reasonably possible that the final resolution
of some of these matters could require DaimlerChrysler to
make expenditures, in excess of established reserves, over an
extended period of time and in a range of amounts that
cannot reasonably estimated. Although the final resolution of
any such matters could have a material effect on Daimler-
Chrysler's consolidated operating results for a particular
reporting period, DaimlerChrysler believes that it should not
materially affect its consolidated financial position.
Overall risk
There are no discernible risks that could jeopardize the
continued existence of the company.
5. Events after the end of the 2002 financial year
No events that are of material importance to DaimlerChrysler
and could lead to a changed evaluation of the company, other
than the developments already mentioned, have occurred
after the end of the 2002 financial year. The development of
business in the first two months is consistent with the state-
ments in the Outlook section.
Three lawsuits have recently been brought against Daimler-
Chrysler AG or some of its affiliates raising claims arising out
of the practice of apartheid in South Africa before 1994.
In particular, on September 27, 2002, a putative class action
covering claims arising between 1952 and 1994, captioned
Digwamaje v. Bank of America, No. 02-CV-6218 (RCC)
(S.D.N.Y.), was filed in the United States District Court for the
Southern District of New York naming 84 US, European and
Japanese companies, including DaimlerChrysler AG, as defen-
dants. On November 11, 2002, 91 individuals filed a lawsuit
captioned Khulumani v. Barclays National Bank Ltd., Civ. A.
No. 02-5952 (E.D.N.Y.) in the United States District Court for
the Eastern District of New York against 22 US, European and
Japanese corporate defendants, including DaimlerChrysler AG
and Daimler-Benz Industrie. This lawsuit covers the period
from 1960 to 1993. On November 19, 2002, another putative
class action lawsuit, Ntsebeza v. Holcim Ltd., No. 02-74604
(RWS) (E.D. Mich.), was filed in the United States District
Court for the Eastern District of Michigan naming as defen-
dants four US and European companies, including Daimler-
Chrysler Corporation, and asserting claims arising from 1948
to 1993. All three lawsuits allege, in essence, that the corpo-
rate defendants knew about or participated in human rights
violations and other abuses of the South African apartheid
regime, cooperated with the apartheid government during that
period, and benefitted financially from such cooperation. The
plaintiffs assert various claims, including conspiracy, aiding
and abetting the apartheid regime, violations of the Racketeer-
ing Influence and Corrupt Organizations Act, violations of
international law and the Alien Tort Claims Act, unjust enrich-
ment and unfair and discriminatory labor practices. The plain-
tiffs seek compensatory and punitive damages, disgorgement
of purported illicit profits, an accounting, restitution of the
value of defendants’ purported unjust enrichment, and other
forms of relief, including in the Digwamaje case the establish-
ment of a “historic commission”. Plaintiffs in the Digwamaje
case purport to seek compensatory damages in excess of
$200 billion and punitive damages in excess of $200 billion.
The complaints in the other two lawsuits do not specify
damages. DaimlerChrysler intends to defend against these
claims vigorously.