It boggles the mind as to how Lufthansa could have been unaware...If I had their stock, I would be selling it right now.
Yes, I agree. There are going to be some major lawsuits there, and I bet the company (which is a state airline, I believe) will cease to exist.
Possibly there are German laws that prevent reporting these things to the employer (the doctors sent the reports to the copilot himself, telling him to report them to his employer), so they may have some coverage there. However, they seem to have given him chance after chance, even after he’d been out for periods of several months on end, and I don’t know why they did that. Although again, possibly they weren’t allowed to fire him on psychological grounds.