friday, 23 september of 2016

Volkswagen facing over $8 billion in claims

A German court said Wednesday that Volkswagen (VW) faces over USD $8.2 billion in damage claims from investors over its emissions scandal.

Roughly 1,400 lawsuits have been filed at the Braunschweig court near VW's Wolfsburg headquarters. Plaintiffs allege that VW did not inform shareholders quickly enough of the impending scandal.

The biggest single claim was filed for over €3.3 billion on behalf of institutional investors. The court is still processing claims as many plaintiffs rushed to file before the one-year anniversary of the scandal on September 18.

VW may need to set aside more than the USD $18 billion that they already designated to cover the cost of vehicle refits and a settlement with US authorities.

VW is facing legal difficulty around the world over the emissions scandal. Earlier this month the Australian Competition and Consumer Commission sued VW and its local subsidiary for misleading customers.

In August a district court in Germany ruled that a collective complaint against VW may move forward. Like US-style class-action lawsuits, the collective complaint was launched on behalf of multiple investors who lost money following the diesel emissions cheating scandal.

In July a judge for the US District Court for the Northern District of California gave preliminary approval to a $15 billion settlement between VW and the US Environmental Protection Agency, California officials and consumers.

In June VW agreed to spend up to $14.7 billion to settle allegations of cheating emissions tests and deceiving customers in a settlement with US regulators. In March the US Federal Trade Commission filed suit against VW for false advertising.

(Published by Jurist - September 22, 2016)

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