Tumultuous times continued at German industrial giant Siemens, as reports surfaced that the company will take legal action on Tuesday against two former CEOs for their alleged roles in the company’s €1.3 billion corruption scandal. Siemens also provided details on the first 1,800 jobs that it will trim as part of its plan to cut 16,750 positions.
According to reports in the Financial Times and in Germany’s Süddeutsche Zeitung newspaper, Siemens’ supervisory board will take legal action against 10 former executive board members, including ex-CEO Heinrich von Pierer and his successor, Klaus Kleinfeld. The action will implicate the 10 for allegedly not following up signs of corruption while Siemens employees bribed foreign officials for contracts, according to the FT.
Company sources, who asked not to be named, said the FT report is sound, and that Siemens would have more to say after its supervisory board meets early next week.
The FT said the board would approve claims for damages resulting from the scandal and that it would act on the recommendation of law firm Hengeler Möller to sue executive board members who were in charge from 2003 to 2006. International shareholders have threatened to sue Siemens if it does not pursue the former executives, according to the newspaper.