Volkswagen investors hauled the carmaker into a German court today (10 September) to seek EUR9.2bn (US$10.6bn) compensation for share price falls following news of the diesel emissions scandal breaking three years ago.
Other court cases pending or working their ways through the court systems include a claim by multiple UK owners against the local unit over reduced resale values and vehicle performance following the scandal and subsequent repair work considered unsatisfactory.
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Reuters said the German case involved shareholders representing 1,670 claims seeking damages over the scandal which has cost VW EUR27.4bn in penalties and fines so far.
It was likely only some claims would be taken into account due to the statute of limitations, presiding judge Christian Jaede told the Braunschweig higher regional court as proceedings got under way, the news agency reported.
The case is complicated, with many legal questions to be clarified, Jaede added and the court had not yet set a detailed timetable for proceedings in a case that could well end up in a higher court.
The plaintiffs claim VW failed in its duty to inform investors about the financial impact of the scandal, which became public only after the US Environmental Protection Agency (EPA) issued a ‘notice of violation’ on 18 September, 2015.
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By GlobalDataHad investors known about VW’s criminal activities in rigging emissions tests, they may have sold shares earlier or not made purchases, thereby avoiding losses on their shareholdings, the plaintiffs argue, according to Reuters.
VW shares lost up to 37% of their value in the days after authorities exposed illegal levels of pollution emitted from VW diesel cars.
“VW should have told the market that they cheated and generated risk worth billions,” Andreas Tilp, a plaintiffs lawyer, told Reuters.
“We believe that VW should have told the market no later than June 2008 that they could not make the technology that they needed in the United States.”
VW’s decision between 2005 and 2007 to install cheating software in diesel cars was illegal but it was not clear it was taken to keep investors in the dark, judge Jaede said.
Need a ‘dieselgate’ refresher? See Volkswagen’s emissions crisis for our complete coverage
