Germany Facing Lawsuit Over Decades-Old Bond Default

By Motley Rice Llc, PRNE
Wednesday, August 11, 2010

MT. PLEASANT, South Carolina, August 12, 2010 - The U.S. Court of Appeals for the Eleventh Circuit issued an opinion on
Monday, August 9, 2010, affirming the U.S. District Court for the Southern
District of Florida's denial of Germany's motion to dismiss the Complaint for
lack of subject matter jurisdiction in the case of World Holdings, LLC v. The
Federal Republic of Germany. This ruling means that Germany is not entitled
to sovereign immunity from a lawsuit filed in 2008 by Florida-based company
World Holdings, LLC. The suit alleges Germany failed to honor payment
obligations on bonds marketed and sold in the years following World War I.

World Holdings filed an amended complaint in the case on June 3, 2008, in
federal court in Miami to obtain payment on U.S. Gold bearer bonds, known as
Dawes Bonds and Young Bonds, that Germany issued to thousands of individual
American and other investors in 1924 and 1930. The bonds were bearer bonds
sold in the United States, traded on the New York Stock Exchange and backed
by the full faith and credit of Germany. World Holdings currently owns or
controls a large number of Dawes and Young Bonds sold to U.S. purchasers and
is charging Germany with breach of contract based on the country's alleged
default of its obligation to pay the outstanding principal and accrued
interest on these bonds. The lawsuit seeks damages in the amount of
outstanding principal and accrued interest.

"We are pleased by the court's decision," said Motley Rice attorney
Michael Elsner, who represents World Holdings. "We may now move forward with
the case, and our client will have the opportunity it deserves to establish
that its bonds should be enforceable and that Germany should be held

About Motley Rice LLC

Motley Rice LLC is one of the nation's largest plaintiffs' litigation
firms. Motley Rice attorneys gained recognition for their work on behalf of
asbestos victims, the State Attorneys General in their landmark litigation
against Big Tobacco, and the 9/11 families in their groundbreaking lawsuit
against terrorist financiers. With more than 60 attorneys and hundreds of
staff, the firm continues to handle complex litigation, including cases in
the areas of aviation disasters, securities and consumer fraud, shareholder
rights, asbestos bankruptcy, occupational disease including mesothelioma,
environmental contamination, human rights, drugs and medical device defects.
Motley Rice is headquartered in Mount Pleasant, South Carolina, and has
additional offices in Connecticut; Washington, D.C.; New York; Rhode Island;
and West Virginia. For more information about Motley Rice LLC and the lawsuit
by World Holdings against The Federal Republic of Germany, contact Motley
Rice attorney Mike Elsner (NY, SC, VA) at +1-800-768-4026.

Alicia Ward, Director of Marketing and Communications, Motley Rice, LLC, +1-843-532-7011, AWard at

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