The German Federal Supreme Court has dismissed GN’s request to appeal the decision by the Düsseldorf Court of Appeals from March 26, 2014. In the decision from March 2014, GN’s claim for compensation against the German Federal Cartel Office (FCO) was dismissed. The decision by the German Federal Supreme Court implies that GN has no further legal possibilities to continue the claim for compensation against the FCO despite the legally acknowledged fact that the FCO unlawfully prohibited the sale of GN ReSound to Sonova in 2007. GN fundamentally disagrees with the court that the FCO is not liable for their critical and erroneous ruling that prevented the agreed and legitimate transaction between GN and Sonova.

Since the FCO’s erroneous prohibition of the sale of GN ReSound to Sonova in 2007, GN ReSound has delivered a strong turnaround driven by efficient restructuring and technological leadership. GN will continue to drive shareholder value through execution of the 2014 – 2016 strategy: INNOVATION & GROWTH.

Following the decision by the German Federal Supreme Court, GN is liable for legal costs, including a court fee, of up to EUR 2 million, which will impact the EBITA guidance for 2015 for “Other” equivalently.

Background

On December 22, 2010, GN filed a claim of EUR 1.1 billion (approximately DKK 8.2 billion) as compensation for the significant loss imposed on GN and its shareholders in relation to the FCO’s unlawful prohibition of the sale of GN ReSound to Sonova.

In February 2013, the Court of Cologne dismissed GN’s claim. The court acknowledged that the prohibition of the sale was unlawful, and the FCO had breached its duty but found that the unlawful prohibition did not result in liability for the FCO.

GN disagreed with the decision by the court and decided to appeal the decision in March 2013. The Düsseldorf Court of Appeals dismissed the case on the grounds that the FCO had not acted negligent when they prohibited the sale.

For further information please contact:

Peter Justesen
Vice President – Investor Relations & Treasury
GN Store Nord A/S
Tel: +45 45 75 87 16