Case History

Meinl European Land Ltd. ADC were admitted for trading at the Vienna Stock exchange in November 2002. The ADC were distributed mainly by independent securities services providers. An investment in Meinl European Land was marketed as a secure but never the less more profitable alternative to conservative investments. By doing so Meinl European Land managed to raise 4.6 billion Euros.

 

Stock Rates Meinl European Land

 

The price of Meinl European Land ADC constantly rose until mid 2007. There was no notable or substantial fall in the rate, whereas in all secrecy the company purportedly invested hundreds of millions of Euros in own ADC in order to create demand at the Vienna Stock Exchange and enhance trust in the own marketing.

In August 2007 it became public that Meinl European Land had bought back own ADC. On 29th of August 2007 Meinl European Land in fact informed the public that own certificates had been bought back for 1.8 billion Euros. At this point in time the rate of Meinl European Land deteriorated and the accumulated 88.8 Million certificates could no longer be sold without making the loss even more visible.

Let alone that the rate dropped dramatically within several weeks, which was completely unexpected by the investors, Meinl European Land further announced a future buyback program to stabilize the rate, which was never implemented. It turned out that the announcement was only made in order to legitimate the past buybacks.

In August 2008 the name of Meinl European Land was changed to Atrium European Real Estate Limited and the contractual relations to the Meinl Group were terminated after an investment of CPI/Gazit Holdings Limited.

 In 2008 a criminal investigation of the Public Prosecutor, Vienna Office against Julius Meinl and others was initiated, which is still pending. In May 2011 the Supreme Court for Administrative Matters confirmed several convictions of former board members for market abuse. There are still thousands of civil proceedings connected with the Meinl Case pending at Austrian Courts. 

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