Versorgungswerk der Zahnärztekammer Berlin (VZB), the pension fund for dentists in Berlin, Bremen and Brandenburg, is filing a lawsuit against consultants, executives, and the state of Berlin to recover €1.1bn in losses.
The fund has asked the court to determine jurisdiction, as some advisers and former committee members are not Berlin residents.
The case targets ApoBank, audit and consulting firm Forvis Mazars, the city of Berlin, and nine former and current VZB committee members, chair Thomas Schieritz confirmed to IPE.
“We try to minimise [financial damages] by demanding maximum damages, insofar as they are reasonable, from the parties involved because they have breached their duty,” Schieritz said.
The pension fund wiped out roughly half of its assets through venture capital investments in companies that went bankrupt. A more precise figure for 2024 losses is expected following an investment assessment in February or March, he added.
VZB is waiting for a more “favourable market situation” before reshuffling its portfolio to avoid selling assets at a discount, which would increase losses, Schieritz said.
The fund is also looking to mandate PwC to support the winding up of investments.
In the long term, VZB plans to reduce illiquid investments and move into conventional, tradable products such as ETFs, which carry lower risk, Schieritz noted.
The lawsuit follows pressure from members on government officials and Berlin’s supervisory authority to recover assets and secure pensions.
Schieritz said members’ demands aim to raise public awareness, but warned against “socialising” losses that affect a limited group.
He added that, in the long term, it may make sense for the state to cover part of the losses to protect dental care services in Berlin, Bremen and Brandenburg.
“If we cannot generate pensions for dentists, the consequence will be that no new dentists will establish [a practice] in the federal states, and perhaps an exodus of dentists from the three states will occur,” he explained.
Members are preparing a letter calling for Franziska Giffey, head of Berlin’s economic affairs department, which supervises VZB, to step down. Giffey dismissed responsibility for the losses, blaming members holding key positions for lacking the skills to make complex investment decisions.
