By Saeed Shah
Published: 12 April 2007
Shell is to pay European investors $353m (£177m) in compensation over the reserves overbooking scandal that hit the oil giant in 2004.
A group led by 50 European institutional shareholders, including UK fund managers, are also in line for $96m from a fine already levied by the US Securities & Exchange Commission. Yesterday’s out-of-court settlement is likely to lead to a deal with US investors which would mean a further pay-out of $80m.
It is believed to be the largest financial recovery in Europe for a European-based securities claim. The law firm that brought the action, Grant & Eisenhofer, said: “It is certainly the first class-wide settlement of a securities claim by European investors.” Shell said it struck the settlement “without admitting any wrongdoing”. The company’s general counsel Beat Hess said: “For us, it is an important step in closing legal proceedings related to Shell’s recategorisation of reserves.”
The UK investors that took part in the class action claim were Axa, F&C, Morley, Railways Pension Trustee Company, Co-Operative Insurance Society and the Universities Superannuation Scheme. Jay Eisenhofer, of Grant & Eisenhofer, said: “European investors do not have the same options to pursue securities claims that are available to US investors through class actions. By coming together in such a large fashion across multiple countries, and petitioning the Amsterdam Court of Appeals to work directly with Shell to settle their claims, this group of trans-European investors has struck a uniquely European resolution to settling a European securities claim.”
In 2004, Shell slashed its proven oil and gas reserves by 20 per cent, leading to the departure of three top executives, and the reorganisation of its corporate and management structure.
Rene Maatman, chief legal counsel at ABP, the Dutch pension fund that was part of the European lawsuit, said: “The shareholders will be entitled to an amount which is equal to approximately 10-13 per cent of their estimated damages.”
Shell also paid $90m to settle a lawsuit brought by employee shareholders in 2005.
The total paid by Shell over the reserves scandal will be close to $700m in fines and compensation. Last year, the company claimed it would “vigorously defend itself” against the European claim settled yesterday, which was first filed in the US courts, but later in the year Shell took a $500m charge against potential claim payouts.
http://news.independent.co.uk/business/news/article2442079.ece
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Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
