Volkswagen Sued for $3.7B in Germany Over Dieselgate Scandal

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Volkswagen Sued for $3.7B in Germany Over Dieselgate Scandal

Volkswagen is being sued for $3.7 billion by investors worldwide.

The company is already dealing with lawsuits in the U.S. over its dieselgate scandal, and now 278 institutional investors from around the world are filing a lawsuit against Volkswagen AG in Germany. The suit claims that the German automaker failed to publish information about the emissions scandal in a timely manner and is now the biggest legal challenge it faces to date. In a statement, the court said that 70 cases are pending in Braunschweig, where the lawsuit was filed. Volkswagen has refused to take part in settlement negotiation and won’t waive a statute of limitations defense, so it has become necessary to file the lawsuit.

SEE ALSO: VW to Let Go 3,000 Office Workers in Germany

Over the year, the company’s shares have fallen 16 percent in Europe and continue to decline as a result of the diesel scandal. Among the plaintiffs in the case are investors from Australia, Austria, Canada, Denmark, France, Italy, Japan, Luxembourg, the Netherlands, Norway, Sweden, Switzerland, the U.K., the U.S. and Taiwan. The groups include 17 German investment management companies in addition to insurance companies and the California Public Employees’ Retirement System, one of the largest pension funds in the U.S.

An additional suit is being discussed with the attorneys handling this case, with another 20 institutional investors seeking over $1.1 billion in damages.

[Source: Bloomberg]

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  • Skye

    beautiful dashboard