More trouble ahead for Volkswagen as the German insurance company Allianz plans to sue the automaker and ask for compensation over the falling shares.
Such news keep hitting Volkswagen, as increasingly more investors are asking for compensations over the massive drop of the company’s market share that followed the September emissions disclosures. Now, the German insurer Allianz plans to file a lawsuit in the few next weeks over the same issue, a person familiar with the situation told Reuters. “It will happen within this month,” the source said. Allianz Global Investors said they did not file an action against VW to date, but they were pondering on engaging in a suit. “As asset manager it is our fiduciary obligation to evaluate potential claims against capital market participants and, if necessary, follow through in the best interest of our investors,” they said. “A potential compensation would be for the benefit of the funds.” This move represents the first such action from a major German company against the Europe’s biggest automaker, which has been protected so far in its homeland.
Separately, Volkswagen now faces more trouble in Europe, as France has opened a formal investigation into suspected “aggravated fraud”. The prosecutors in Paris have already opened a preliminary inquiry in October, and French police carried out searches at the German carmaker’s offices in France, seizing computer material. Volkswagen has said 946,092 vehicles in France were equipped with the EA 189 engines potentially affected by the emissions data manipulation carried out by the company worldwide. The probe concerns vehicles sold in France, according to the prosecutor’s office.