Siemens 2015 Annual Report Download - page 91

Consolidated Financial Statements 
As previously reported, in September , the Israeli Antitrust
Authority requested that Siemens present its legal position
regarding an alleged anti-competitive arrangement between
April  and April  in the field of gas-insulated switch-
gear. In September , the Israeli Antitrust Authority con-
cluded that Siemens AG was a party to an illegal restrictive ar-
rangement regarding the Israeli gas-insulated switchgear
market between  and , with an interruption from Oc-
tober  to February . The Company appealed against
this decision in May .
Based on the above mentioned conclusion of the Israeli Anti-
trust Authority, two electricity consumer groups filed motions to
certify a class action for cartel damages against a number of
companies including Siemens AG with an Israeli State Court in
September . Both class actions seek compensation for al-
leged damages, which are claimed to be in a range of ILS billion
to ILS. billion (approximately €  million to €  million as
of September ). The court dismissed one of the two class
actions claiming ILS billion. This proceeding is therefore final-
ized. In addition, the Israel Electric Corporation (IEC) filed at the
end of December  with an Israeli State Court a separate
ILS. billion (approximately €  million as of September )
claim for damages against Siemens AG and other companies
that allegedly formed a cartel in the Israeli gas insulated switch-
gear market. Siemens AG is defending itself against the actions.
In October , Siemens AG and Siemens Israel Ltd., Israel,
were asked to present their position before the Israeli District
Attorney (DA) regarding potentially illegal payments that were
allegedly paid to Israeli Electric Company-representatives in the
early ’s. In August , the Israeli Exchange Supervisory
Authority (ISA) concluded its investigation and transferred
the investigation files to the DA, who will make the decision
whether or not to take any legal steps against any of the sus-
pects named in the ISA investigation. Siemens has not been
served with any charges so far. Siemens is cooperating with
the Israeli authorities.
As previously reported, in May , Siemens Ltda., Brazil,
(Siemens Ltda.) entered into a leniency agreement with the
Administrative Council for Economic Defense (CADE) and other
relevant Brazilian authorities relating to possible antitrust vio-
lations in connection with alleged anticompetitive irregulari-
ties in metro and urban train projects, in which Siemens Ltda.
and partially Siemens AG, as well as a number of other compa-
nies participated as contractor. In March , CADE com-
menced administrative proceedings, confirming Siemens
Ltda.’s immunity from administrative fines for the reported po-
tential misconduct. In connection with the above mentioned
metro and urban train projects, several Brazilian authorities
initiated investigations relating to alleged criminal acts (cor-
ruptive payments, anti-competitive conduct, undue influence
on public tenders).
As previously reported, in March , Siemens was informed
that in connection with the above mentioned metro and urban
train projects the Public Prosecutor’s Office São Paulo has re-
quested criminal proceedings at court into alleged violations of
Brazilian antitrust law against a number of individuals includ-
ing current and former Siemens employees. The proceedings
continue; the Public Prosecutor’s Office São Paulo has, in the
meantime, appealed all decisions where the courts denied
opening criminal trials.
As previously reported, in May , the Public Affairs Office
(Ministério Público) São Paulo initiated a lawsuit against
Siemens Ltda. as well as other companies and several indivi-
duals claiming, inter alia, damages in an amount of BRL. bil-
lion (approximately €  million as of September ) plus
adjustments for inflation and related interest in relation to train
refurbishment contracts entered into between  and .
A technical note issued by the Brazilian cartel authority CADE
earlier in  had not identified evidence suggesting Siemens
Ltda.’s involvement in anticompetitive conduct in relation to
these refurbishment contracts. In January  the district
court of São Paulo admitted a lawsuit of the State of São Paulo
and two customers against Siemens Ltda., Siemens AG and
other companies and individuals claiming damages in an un-
specified amount. In March , the district court of São Paulo
admitted a lawsuit of the Public Affairs Office (Ministério
Público) São Paulo against Siemens Ltda. and other companies
claiming, inter alia, damages in an amount of BRL million
(approximately €  million as of September ) plus adjust-
ments for inflation and related interest in relation to train main-
tenance contracts entered into in  and . In Septem-
ber , the district court of São Paulo admitted another
lawsuit of the Public Affairs Office (Ministério Público) São Paulo
against Siemens Ltda. and other companies claiming, inter
alia, damages in an amount of BRL million (approximately
€  million as of September ) plus adjustments for infla-
tion and related interest in relation to train maintenance con-
tracts entered into in  and . Siemens will defend itself
against these actions. It cannot be excluded that further signif-
icant damage claims will be brought by customers or the state
against Siemens.
As previously reported, CADE is conducting – unrelated to the
above mentioned proceedings – two further investigations into
possible antitrust behavior in the field of gas-insulated and
air-insulated switchgear from the ’s to . Siemens is
cooperating with the authorities.