FAQs

YOUR CLAIM FOR DAMAGES

> Why are pesticides wholesalers liable for cartel damages?

Why are pesticides wholesalers liable for cartel damages?

The Bundeskartellamt has found that the leading German wholesalers unlawfully agreed on prices for the sale of pesticides products with each other in the years from 1998 to March 03, 2015. The wholesalers have admitted to this infringement to the Bundeskartellamt. They can now no longer dispute these findings. According to the law, this means that the wholesalers involved in the cartel are jointly and severally liable for all damage resulting from these price agreements.

> The wholesalers involved in the cartel have already paid many millions in fines on the basis of the Federal Cartel Office's penalty notices. Do they also have to pay damages?

The wholesalers involved in the cartel have already paid many millions in fines on the basis of the Federal Cartel Office's penalty notices. Do they also have to pay damages?

The fine has nothing to do with the damages. The fine is the penalty that the wholesalers involved in the cartel have to pay to the state (because of their serious violations of the law). Independently of this, they are obliged to pay damages to those injured by the cartel.

> What is the legal basis for claims for damages?

What is the legal basis for claims for damages?

According to established case law and recognized principles of economic experience, it can be assumed that price agreements lead to higher prices. Customers of companies involved in a cartel pay excessive prices and have suffered damages in the amount of this price surcharge. However, cartel victims are not only direct customers of the companies involved in the cartel, but also customers of these customers. If a cartel has largely covered the market, then it must also be assumed that the price level in the market as a whole was excessive because of the cartel. Thus, everyone in a period from 1998 to the end of 2015/2016 who purchased pesticides products is affected and has a legal claim for damages. In recent years, the legislator and case law at German and European level have ensured that this claim can be enforced. On the one hand, cartel offenders are to pay for the damage they have caused, and victims are to be compensated. On the other hand, other companies should also be deterred from the outset from committing a cartel to the detriment of their customers and the economy as a whole.

> Who is entitled to damages?

Who is entitled to damages?

We assume that anyone who purchased pesticides products in Germany, regardless of from whom, during the period in which the cartel had an impact on prices, paid an excessively high price as a result of the cartel. There is thus a statutory claim for damages against the wholesalers involved in the cartel in the amount of this price surcharge. The claims for damages exist even if there was no business relationship with the wholesalers involved in the cartel. Since the wholesalers participating in the cartel are each jointly and severally liable for the entire cartel damage, these claims for damages can be asserted against any wholesaler participating in the cartel.

> Haven't some of my claims for damages from the early days of the cartel already become time-barred?

Haven't some of my claims for damages from the early days of the cartel already become time-barred?

In line with German legal regulations, claims for damages arising from the initial phase of the cartel are subject to a statute of limitations. Nonetheless, we foresee the possibility of pursuing damages claims dating back to the early stages of the cartel, leveraging the precedence of European law. Our confidence in this strategy is bolstered by a recent decision from the European Court of Justice. Consequently, we intend to pursue damages claims for each participant involved in the joint action, encompassing all documented pesticide purchases from 1998 onwards. This approach substantially enhances the potential for substantial claims covering damages and interest for each participant.

> How are damage claims calculated?

How are damage claims calculated?

The amount of your claim for damages is based on the difference between the price you paid for your pesticides products and the price you would have paid if there had been no illegal price agreements. Since this so-called hypothetical competitive price did not exist in the market, it must be estimated and thus also the amount of the damage. Judges have the legal authority to estimate damages. The exact amount of your claim for damages will ultimately be determined either by a court or negotiated in a settlement with the other party. In order to best pursue your claim, the team working on your behalf includes not only attorneys, but also experts in competition economics. These experts will prepare a damage report, which will be the basis for asserting your claim for damages. An initial examination of hundreds of thousands of invoices has revealed a cartel price premium of at least about 10% and corresponding damages to farmers and agricultural businesses, plus interest.

> Does the compensation include interest claims?

Does the compensation include interest claims?

You are entitled to statutory interest on your compensation claims at 5%-points above the applicable prime rate since July 2005 and 4% for the period prior to that.

OUR OFFER

> How much does it cost me to participate in the joint action?

How much does it cost me to participate in the joint action?

To participate, first register on our website without obligation. No costs, no fees or risks. Only in case of success LitFin will receive a comparatively small part, about 25% of the recovered amount as a success commission. The exact percentage of this share depends on the amount of your claim for damages as well as on whether you are a member of an association cooperating with us. Therefore, the share LitFin will receive may be significantly less than 25%. You will be informed about the exact amount before your claims are asserted with a lawsuit. Thus, in the event of success, you will receive approximately 75% (or possibly even more) of the amount recovered for you from damages and interest. In the event of losing, you will not incur any costs, as LitFin will assume these as a litigation financier.

> Can I also sell my claims?

Can I also sell my claims?

Instead of letting LitFin fully finance the assertion of your claims, you can also sell your claims to LitFin. After reviewing your documents and invoices, we will offer you approximately 15% of the proven claim amount. The advantage of selling your claims is that the matter is settled for you, and you receive payment immediately. In the financing model, you have to wait for the payment, which is much higher in case of success, until the conclusion of the court proceedings by a judgment or settlement.

> What are the advantages of LitFin's offer?

What are the advantages of LitFin's offer?

No costs, fees, or risks. Only in case of success LitFin will receive a comparatively small share of the recovered amount. Everything is transparently regulated. LitFin has a lot of experience in this area, for example in the assertion of claims for damages from victims of the truck cartel or from holders of Wirecard shares. You will also benefit from being represented and supported by specialized and highly recognized lawyers and competition economics experts, throughout the entire proceedings and with full commitment. In doing so, we have the same interest as you: enforcing the highest possible compensation as quickly as possible.

> What is a "cooperating association" and how does my membership increase my share of the success as a participant in the class action?

What is a "cooperating association" and how does my membership increase my profit share?

If you are a member of a cooperating association or an association that cooperates with us, you will automatically receive a 2%-point increase in your share of the proceeds. Depending on the sum of the damage claims of all participants in the joint action who are members of the association or federation, your profit sharing increases by up to a further 5% points, i.e., a total of up to 7%-points. If you have any questions about whether the association or federation of which you are a member cooperates with us, simply contact your association or federation or us directly.

YOUR PARTICIPATION

> How can I participate in the joint action?

How can I participate in the join action?

To participate, first register on our website without obligation.
When registering, you can indicate whether you are interested in litigation financing or the sale of claims, how you became aware of our offer, which association and which association you are a member of, whether there was a legal succession during the cartel period (e.g. farm transfer) and whether your farms are part of an association. You will then be sent the relevant contract offers, sample agreements, and instructions by e-mail. You will also receive a so-called PSM number (PSM stands for plant protection product) as an identification number and your access to our platform. If you agree with the contract offer, we ask you to sign and return it. You will then be part of the action group.

> What documents and information to prove my pesticide purchases do I need to submit and in what way?

> What documents and information to prove my pesticide purchases do I need to submit and in what way?

Zur Teilnahme an der Klage und zur Geltendmachung von Schadensersatzansprüchen müssen Sie alle Dokumente zum Kauf von Pflanzenschutzmitteln zwischen dem 1. Juli 1998 und dem 30. Juni 2022 als Scans auf unsere Plattform hochladen. Wir benötigen in erster Linie Ihre Einkaufsrechnungen. Wenn Sie für länger zurückliegende Zeiträume keine Rechnungen mehr haben, akzeptieren wir auch andere Nachweise über Ihre Pflanzenschutzmittel-Einkäufe. Wir schicken Ihnen hierzu nach Ihrer Registrierung Instruktionspapiere zu. Das Zusammenstellen, das Einscannen und das Hochladen ist ein einmaliger Aufwand für Sie, den wir Ihnen leider nicht abnehmen können. Dies bildet jedoch die Grundlage der wettbewerbsökonomischen Bewertung Ihres Schadens sowie der Klageforderung.

> Why should I also upload evidence of purchases of pesticides products for the period after the cartel until June 30, 2022?

Why should I also upload evidence of purchases of pesticides products for the period after the cartel until June 30, 2022?

It is reasonable to assume that the cartel continued to have a price impact after it ended. In addition, a recognized method for determining damages is a complex comparison of prices during the cartel and after the cartel. In this process, all price-relevant factors that have nothing to do with the cartel are factored out. For both the damages claim and the comparison method, we need your invoices up to the end of the last fiscal year.

> Can I also claim damages if I only took over the business during the cartel period or after the end of the cartel in March 2015? Which documents do I have to submit then?

Can I also claim damages if I only took over the business during the cartel period or after the end of the cartel in March 2015? Which documents do I have to submit then?

In principle, only the current owner of the business can assert claims for damages. The claims are linked to the business and are regularly transferred automatically to the new owner of the business. We then only need to be able to prove that the business has been transferred to you with legal effect. In such a case of legal succession, we therefore also need the receipts for the purchase of pesticides products made by your legal predecessor. If, for example, you have taken over the business from a predecessor by way of succession or by legal transfer, such as in the case of a generational change (“Hofübergabe”) or the dissolution of a previously existing business or the formation of a new GbR or GmbH & Co. KG, from a predecessor, please indicate this during registration. For this purpose, you can set a check mark under "Legal succession" in the registration form. In the next step, we require you to send us evidence of the transfer of the farm to you, such as the farm transfer agreement or significant excerpts, the certificate of inheritance, partnership agreements or partnership resolutions. If necessary, we will then also ask you to agree on the assignment of claims. You will be sent instructions and samples on how to do this.

> What if my business is part of an association of several businesses?

What if my business is part of an association of several businesses?

If your farm is part of an association of several operating farms and/or management companies or contractors, this farm can assert its claims independently or, if necessary, also in the association through assignment agreements. In this case, please tick the box "Group" when registering. We will then send you information on this and sample assignment agreements.

> Is it certain that my claims will be asserted?

Is it certain that my claims will be asserted?

Your claims will definitely be asserted together with the claims of the 2,000 other farmers and agricultural businesses. The claims will probably be asserted in several lawsuits.

> Have you already filed a lawsuit? Have there already been settlement negotiations with the other side?

Have you already filed a lawsuit? Have there already been settlement negotiations with the other side?

We have already notified the other party of the claims for damages. So far, they have not been willing to enter into settlement negotiations. We are currently preparing an initial lawsuit for the farmers and agricultural businesses whose data has already been processed. However, in any case, the claims of all farmers and agricultural enterprises of the action group will be asserted.

YOUR CLAIM FOR COMPENSATION