Siemens 2013 Annual Report Download - page 312

92 A. To our Shareholders 117 B. Corporate Governance 155 C. Combined Management Report

As previously reported, in April , the Defense Criminal
Investigative Service of the U.S. Department of Defense con-
ducted a search at the premises of Siemens Medical Solutions
USA, Inc., United States, in Malvern, Pennsylvania, in connec-
tion with an investigation relating to a Siemens contract with
the U.S. Department of Defense for the provision of medical
equipment. Siemens is cooperating with the authorities.
As previously reported, in June , Siemens AG and two of
its subsidiaries voluntarily self-reported, among others, possi-
ble violations of U.S. Export Administration Regulations to the
responsible U.S. authorities. In October, , the U.S. Depart-
ment of Commerce notified Siemens that it closed its case
without taking further action. In January , the U.S. Depart-
ment of the Treasury notified Siemens that it closed its case
without taking further action.
As previously reported, in December , the United States
Attorney ’s Office for the Northern District of New York served
a Grand Jury subpoena on Siemens that seeks records of
consulting payments for business conducted by the Building
Technologies Business Unit in New York State over the period
from January ,  through September , . In June
, the authority notified Siemens that it closed its case.
In February , the United States Attorney ’s Office for the
Eastern District of New York served a subpoena on Siemens
Healthcare Diagnostics Inc., United States, for information re-
lating to a diagnostics process. Siemens is cooperating with
the authority.
In January , Siemens Electrical, LLC, USA (Siemens Electri-
cal), an entity wholly-owned by Siemens Industry, Inc., USA,
entered into a Deferred Prosecution Agreement (DPA) with the
New York County District Attorney ’s Office. The DPA relates to
misconduct concerning Master Electrician and Minority Busi-
ness Enterprise requirements in connection with contracts
with the New York City Department of Environmental Protec-
tion. The individuals responsible for the admitted misconduct
were Siemens’ former business partners to the predecessor
to Siemens Electrical. Under the terms of the DPA, Siemens
Electrical agreed to, among other things, forfeit US$ million.
The case will be dismissed after two years if the company
meets certain specified conditions under the DPA.
In March , Nokia Siemens Networks Holding B.V. (NSN),
Nokia Corporation and Nokia Finance International B.V. (Nokia
Finance)
filed a request for arbitration against Siemens AG.
NSN, Nokia Corporation and Nokia Finance sought damages
in the amount of € million for alleged breaches of the
framework agreement entered into among the parties in
. The claims related to a contract which had been trans-
ferred to a subsidiary of NSN. In connection with the sale of
Siemens AG’s shares in NSN to Nokia on July , , the par-
ties settled the dispute.
End of October  Essent Wind Nordsee Ost Planungs- und
Betriebsgesellschaft mbH filed a request for arbitration against
Siemens AG alleging violations of a contract for the delivery of
a High Voltage Substation entered into by the parties in .
The claimant claims damages in an amount of € million
plus interest and a determination that Siemens AG shall be
liable for any further damages, which are claimed to amount to
€ million. Siemens AG will defend itself against this action.
For legal proceedings information required under IAS , Provi-
sions, Contingent Liabilities and Contingent Assets, is not
disclosed, if the Company concludes that the disclosure can
be expected to seriously prejudice the outcome of the litigation.
In addition to the investigations and legal proceedings de-
scribed above, Siemens AG and its subsidiaries have been
named as defendants in various other legal actions and pro-
ceedings arising in connection with their activities as a global
diversified group. Some of these pending proceedings have
been previously disclosed. Some of the legal actions include
claims or potential claims for punitive damages or claims for
indeterminate amounts of damages. Siemens is from time to
time also involved in regulatory investigations beyond those
described above. Siemens is cooperating with the relevant au-
thorities in several jurisdictions and, where appropriate, con-
ducts internal investigations regarding potential wrongdoing
with the assistance of in-house and external counsel. Given
the number of legal actions and other proceedings to which
Siemens is subject, some may result in adverse decisions.
Siemens contests actions and proceedings when it considers it
appropriate. In view of the inherent difficulty of predicting the
outcome of such matters, particularly in cases in which claim-
ants seek indeterminate damages, Siemens may not be able to
predict what the eventual loss or range of loss related to such
matters will be. The final resolution of the matters discussed
in this paragraph could have a material effect on Siemens’
business, results of operations and financial condition for any
reporting period in which an adverse decision is rendered.
However, Siemens currently does not expect its business,
results of operations and financial condition to be materially
affected by the additional legal matters not separately dis-
cussed in this paragraph.