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Atrium European Real Estate to sue former management for €2bn

Atrium European Real Estate has said that it intends to pursue a €2bn High Court damages claim against its former management.


The Central and Eastern European shopping centre developer and manager said that its board of directors resolved to pursue claims against Austrian-born banker Julius Lindbergh Meinl, his Meinl Bank and his food and drink company Julius Meinl Aktiengesellschaft.


The claim is for loss and damage allegedly suffered by Atrium in connection with actions taken by its former management before August 2008, when it was known as Meinl European Land (MEL).


Meinl Bank owned MEL, which changed its name to Atrium European Real Estate in 2008 when it was taken over by Citi Property Investors and Gazit Holdings.


Also named as potential defendants are former MEL chairman Georg Kucian and board members Peter Weinzierl, Stephan Visy, Günter Weiss, Heinrich Schwägler, and Karel Römer.


A spokesman for Atrium said: “Since the current management took over the running of Atrium, the Austrian National Bank, the Austrian Financial Market Authority, the Jersey Financial Service Commission and the Austrian criminal authorities have been investigating the activities of Julius Meinl, Meinl Bank and certain former directors of MEL.


 “This led the company’s management to decide that it was in the company’s best interests to begin its own parallel investigation into the allegations. Having reviewed the information gathered as a result of these ongoing investigations, the board of Atrium has decided that it is in the best interests of the company and its shareholders to pursue litigation against the defendants to seek appropriate redress.”


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