Interview with lawyer Jens Reime: Liability issues in the GGMT case and possible consequences for sales in Dresden
Interviewer: Mr. Reime, thank you for taking the time for us again. We already talked about the GGMT case a few weeks ago. Now there is bad news for investors: On October 2, 2024, the trial against the company’s leading figures for alleged fraud will begin in Vienna. How do you see the situation for the affected investors, especially with regard to the sales department in Dresden? Could they also be held liable?
Jens Reime: Thank you for bringing up the topic again. The upcoming trial in Vienna is certainly an important milestone in clarifying the responsibilities and the exact circumstances of the alleged fraud at GGMT. With regard to sales, such as the one in Dresden, the question of liability naturally arises. In principle, a sales department that has sold such financial products can be held responsible, especially if it has breached its duty of care. If it turns out that the sales department did not sufficiently check whether the products were reputable or that customers were not adequately informed about the risks, this can give rise to liability.
Interviewer: What obligations does a distributor have in such a case to protect themselves from liability claims?
Jens Reime: Salespeople have a duty to provide investors with comprehensive and truthful information about the products on offer. This includes being aware of the background and seriousness of the offers themselves. Salespeople cannot blindly sell products, but must check whether the promised returns are realistic and whether the companies they work with have a sound business foundation. In the financial sector in particular, there are strict requirements for informing investors, which must also make the risks clear. If salespeople were negligent in this regard or even deliberately concealed risks, there is a risk of joint liability.
Interviewer: It sounds like there could be significant consequences for sales. How should affected investors behave now?
Jens Reime: Affected investors should urgently check whether they can make claims for damages against the distributor. It is important to secure all relevant documents such as contracts, prospectuses and communication histories in order to be able to prove what information was available at the time of the investment. A specialist lawyer can then check whether the distributor has breached its obligations. If this is the case, there is a good chance that investors can reclaim at least part of their losses.
Interviewer: In the case of GGMT, are there any special features that investors should consider with regard to distribution?
Jens Reime: The GGMT case is special because it involves suspicion of large-scale fraud. This means that not only the company itself, but also all parties involved, such as sales, are being examined. If it emerges during the trial that sales knew about the questionable practices or at least could have recognized them, the intermediaries could also be held accountable. It is important that investors do not remain passive, but actively have their claims examined.
Interviewer: Thank you very much, Mr. Reime, for your assessments and the valuable information.
Jens Reime: You’re welcome. I advise all affected investors to take action now and have their legal options carefully examined.
