Almost 300 institutional investors in Volkswagen have filed a multi-billion “euro suit” against the carmaker for what they see as breaches of its capital markets duty in the emissions scandal. The lawsuit, seeking damages of 3.256 billion euro ($3.61 billion), was filed at a regional court in Braunschweig in VW’s home state of Lower Saxony last month. The 278 investors from all over the world are Plaintiffs in the lawsuit. They include German insurers and U.S. pension fund Calpers. The lawsuit is over whether VW neglected its duty to the capital markets regarding the timeframe between June 2008 and Sept. 18, 2015. Volkswagen had published an account of the events leading to the violation of U.S. emissions law which was publicly announced by the U.S. Environmental Protection Agency (EPA).
The Plaintiffs also filed a motion for a so-called “model claims,” a German legal procedure which – for lack of U.S. style class-action lawsuits – uses court rulings won by individual investors as templates to set damages for others that are equally affected. Andreas Tilp said in a statement:
Due to the fact that – according to our information and experience – Volkswagen AG persistently denies any settlement negotiations and also refuses to waive the statute of limitation defense until now, it was necessary to file this first multi-billion euro lawsuit.
It will be interesting to see how this litigation fares in the German court judicial system. The problems facing VW, however, continue to mount.
Source: Bloomberg News
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