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Corona Mask Dispute: Textile Firm Demands Millions from Federal Government in Court
๐Ÿ‡ฉ๐Ÿ‡ช Germany /Economy & Trade

Corona Mask Dispute: Textile Firm Demands Millions from Federal Government in Court

From Die Zeit · () German

Translated from German, summarized and contextualized by DistantNews.

At a glance

News Named sources In the courts
  • A Hamburg-based textile company is suing the German federal government for 464 million euros.
  • The lawsuit concerns whether promises made by the Health Ministry constitute a purchase contract.
  • The company claims the ministry owes them for a mask order that ultimately did not proceed.

A Hamburg textile company is demanding nearly half a billion euros from the German federal government in a lawsuit over a Corona mask order. The Pure Fashion Agency claims that commitments made by the Federal Ministry of Health in March 2020 should be considered a binding purchase contract.

The thing is clear, no contract was concluded here.

โ€” Martin WittmannThe lawyer for the federal government in the Corona mask dispute.

The company is seeking 287 million euros in damages, plus interest, bringing the total claim to 464 million euros. The dispute centers on phone calls and email exchanges between the company and then-Health Minister Jens Spahn, as well as ministry officials. The company's CEO, Matthias Timm, stated that after a personal conversation with Spahn, he was certain a contract was formed.

However, the Federal Ministry of Health disputes this, arguing that no contract was concluded. The ministry's lawyer, Martin Wittmann, asserted that the matter is clear and no agreement was reached. The ministry cited the company's alleged lack of credibility and poor creditworthiness as reasons for not proceeding with the order, a justification the company's lawyer, Dennis Geissler, calls a "pretext."

After the personal conversation with Mr. Spahn, it was clear to me, this is a contract โ€“ very clear.

โ€” Matthias TimmThe CEO of the Hamburg textile retailer Pure Fashion Agency, referring to his conversation with former German Health Minister Jens Spahn.

Geissler pointed out that the ministry later did purchase protective equipment from the same company, questioning the initial reasoning. He also criticized the ministry's lack of response to a settlement offer of 175 million euros made a year prior. Geissler noted that enforcement interest is accumulating at a rate of approximately 80,000 euros per day.

This makes no sense and shows that this is a pretext, which we were never informed about.

โ€” Dennis GeisslerPure Fashion's lawyer commenting on the ministry's reasoning for not awarding the contract.

Furthermore, Geissler accused Spahn of having personal interests, referencing a significantly larger contract awarded to a Swiss company despite a higher bid compared to Pure Fashion's offer. The lawsuit highlights a contentious dispute over a potential mask deal during the early stages of the pandemic.

The clock has been ticking ever since, with about 80,000 euros in enforcement interest added every day.

โ€” Dennis GeisslerPure Fashion's lawyer highlighting the accumulating interest on their claim.
DistantNews Editorial

Originally published by Die Zeit in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.