SOFTWARE AG | ANNUAL REPORT 2012 148 In connection with the termination of David Broadbent’s Management Board membership, Mr. Broadbent filed suit with the Regional Court of Darmstadt, which the Company considers to be unfounded. After an extensive exchange of briefs, evidence was taken in May and September. The court ruled against the Company’s arguments and found in favor of Mr. Broadbent on December 21, 2012. Software AG filed an appeal against the ruling. Furthermore, a small number of judicial proceedings arise concerning issues related to distribution or the scope of rights of use; generally, however, the number of other legal disputes is very low. GENERAL STATEMENT ON THE GROUP’S RISK SITUATION An overall view indicates that risks in the Software AG Group are limited and manageable. No risks can be identified that are likely to jeopardize the going concern of the Company now or in the future. In February 2012, a non-practicing entity (NPE: a company that solely pursues patent-right violations, rather than man- ufacturing or using the patented invention) from the U.S. state of Delaware sued Software AG in the District Court of Delaware for violating one of its software patents. This NPE has filed similar parallel lawsuits against three other defen- dants. The NPE withdrew its lawsuit against Software AG in January 2013. The NPE also filed a new lawsuit for the alleged violation of two of its software patents in January 2013. Other litigation A number of legal actions have been have been filed with the Regional Court of Saarbrücken in connection with the control and profit transfer agreement with IDS Scheer AG. In these proceedings, the petitioners are seeking an increase in their cash settlements and annual compensatory pay- ments. Software AG considers the objections as to valuation to be groundless. The proceedings were combined into one. The first hearing took place on February 29, 2012 and had no tangible outcome. A new date has not yet been rescheduled. In connection with the merger of IDS Scheer AG and Soft- ware AG, a large number of legal challenges were filed with Regional Court of Saarbrücken, in which the plaintiffs seek a legal review of the set exchange ratio and cash compen- sation. Software AG considers the objections as to valuation to be groundless. The proceedings were combined into one. The first hearing took place on November 23, 2012 and also had no tangible outcome. A new date has not yet been rescheduled.