Hypo Real damages verdict delayed

Shareholders seeking €320 million damages from nationalised German property financier Hypo Real Estate (HRE) must wait until …

Shareholders seeking €320 million damages from nationalised German property financier Hypo Real Estate (HRE) must wait until March 4th for a verdict, a German court said today.

A verdict was expected this week but was delayed after a Munich court asked shareholders to modify their claims, a spokeswoman for the court said.

In the first damages claim brought by shareholders against HRE, lawyer Andreas Tilp accused Hypo Real Estate of not disclosing the extent of potential losses while it was being run by former chief executive Georg Funke.

HRE, which has since changed its leadership, disputed the claims.

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In January 2008, HRE disclosed writedowns of €390 million on toxic assets, despite assurances by the management that the Munich-based real estate lender had not suffered significant impacts from the credit crisis.

Reuters