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New hearing over Daimler resignation opens
The court is hearing shareholders' claim for damages over the alleged impropriety for a second time. Last year, judges rejected the claim, ruling the company had no obligation to announce the departure before its supervisory board made a formal decision. The court also found that DaimlerChrysler was not obliged to announce earlier that discussions had taken place on a possible changeover. The company insists it did nothing wrong, noting that its supervisory board -- the German equivalent of a U.S. board of directors -- decided on Schrempp's future only on July 28, the day of the announcement. The Federal Court of Justice ruled in March that judges failed to consider sufficient evidence and ordered a new hearing. Schrempp said Friday it had been unclear to him what decision the supervisory board would make. However, a lawyer for shareholders, Felix Weigend, argued that 12 out of 20 people on the supervisory board had known about Schrempp's plans a day before the final decision, and he argued that was a breach of insider trading rules. Weigend also said employee council chief Erich Klemm had been told ahead of time. Schrempp was replaced as CEO by Dieter Zetsche, who since has sold most of the company's stake in its former U.S. arm, what is now Auburn Hills, Mich.-based Chrysler LLC. The German automaker now is known as Daimler AG. The July 2005 announcement of Schrempp's departure sent the stock up 10 percent, dismaying investors who had sold shares in the preceding days. The company has said plaintiffs are seeking some 6.5 million euros ($9.4 million) in damages. In August, a Frankfurt court rejected a call from the country's financial regulator to fine Daimler over the same issue, ruling in favor of the automaker. Prosecutors have appealed that decision.