FRANKFURT, Germany — German truckmaker MAN AG has agreed to settle a six year-old fraud case against Portland-based Freightliner LLC.
MAN will receive US$495 million in compensation.
The multinational case stretches back to the days before Freightliner acquired Western Star Trucks, formerly based out of Kelowna, B.C. Western Star was the parent company of British truckmaker ERF, which was bought by MAN in 2000.
MAN alleged ERF’s financial statements had been fraudulently manipulated for years leading up to the takeover, and sued Freightliner, which today is Western Star’s legal successor.
MAN had previously won in British Court for a higher settlement, but DaimlerChrysler — Freightliner’s corporate parent — appealed.
ERF trucks are now re-badged MAN AG models, while Western Star falls under the Freightliner umbrella in North America with sister company Sterling Trucks.
— with files from Reuters
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