Overview

• The Federal Court of Justice (BGH) is reviewing whether companies can demand reimbursement from executives for cartel-related fines they have paid.
• The case involves a former executive of two stainless steel companies fined for participating in a price-fixing cartel from 2002 to 2015.
• Germany's Federal Cartel Office imposed €355 million in fines across 10 companies, two industry associations, and 17 individuals for anti-competitive practices in the steel industry.
• The BGH's referral to the European Court of Justice (ECJ) centers on whether such reimbursement claims are compatible with EU competition law principles.
• A ruling permitting executive liability could expose directors to significant financial risks, often exceeding the coverage of Directors-and-Officers (D&O) insurance policies.