US Investors Sue Germany Over Weimar-Era Bonds
'Rebuilding Hitler's War Machine'
Their age and provenance are clear enough: The bonds were issued by the Weimar Republic some 80 years ago to raise cash. Just how much they might be worth today is open for debate. But six investors in the US are taking Germany to court to find out -- and to force the country to pay up.
The certificates were issued by the Weimar Republic in the 1920s as a way to help pay debts and reparations demanded after World War I. They are still, in fact, being traded with investors hoping they can eventually be redeemed.
Now a handful of investors hope lawsuits filed in several federal courts in the US will force Germany to pay off the bonds. Their value could be hundreds of millions of dollars, with some estimates going into the billions. A month ago, a Miami court ruled against Germany's request to dismiss the lawsuits; Germany had argued that US courts did not have jurisdiction.
The investors argue that a German victory in this case could have negative consequences for the global bond market -- it would damage investors' confidence, they claim, in the security of all government bonds. "Our position is not only correct under the law, it would avoid such a potentially far-reaching precedent," investor attorney Sam Dubbin told the Associated Press.
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