Siemens seeks damages from 11 ex-execs

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Jul. 29, 2008

By GEIR MOULSON
Miami Herald (Associated Press Writer)

BERLIN --Siemens AG said Tuesday it plans to sue two former CEOs and nine other ex-executives for alleged supervisory failings in a corruption scandal that has cost the company millions in fines and damaged its reputation.

Siemens' supervisory board decided to seek damages from former chief executive Heinrich von Pierer and his successor, Klaus Kleinfeld, now the chief executive of U.S.-based Alcoa Inc., and others, the industrial conglomerate said in a statement.

It did not specify how much money it would demand.

Siemens said it based its claim for damages on "breaches of their organizational and supervisory duties" relating to illegal business practices and payments between 2003 and 2006, practices now placing a substantial financial burden on the company.