The case related to MAN's purchase of English truck manufacturer ERF from Freightliner's predecessor company, Western Star, in 2000. MAN discovered in 2001 that ERF's financial controller had been fraudulently manipulating the company's accounts for a number of years. Following this discovery it became apparent that MAN had been defrauded into buying the company by the false accounts. MAN's total losses relating to the fraud have been around £300 million.

The Court found that the fraudster had been speaking on behalf of Western Star when he was untruthful to MAN during the sale process. This means that Freightliner, as Western Star's successor, is liable to compensate MAN for the loss caused by buying ERF. The precise amount of that liability will be determined in subsequent hearings. The next step for MAN will be an application for an interim award of damages.

Håkan Samuelsson, Chairman of MAN's Executive Board, welcomed the judgment, "This judgment is an important step and reflects the view which MAN has always taken: we were defrauded into buying this company and Freightliner has an obligation to compensate us for that fraud.

When MAN discovered the problems at ERF, we acted responsibly by standing behind the company and funding an extensive restructuring programme. We now look forward to DaimlerChrysler's reaction and the next steps in the proceedings."