Volkswagen’s institutional investors are suing the company for neglecting its capital markets duty, claiming billions of euros as compensation.
Volkswagen is facing multiple lawsuits after it admitted in September it cheated on the emissions tests and owners as well as investors are asking for substantial financial damages from Europe’s biggest automaker. 278 investors from all over the world have filed a lawsuit against the company this week, at a regional court in Braunschweig in VW’s home state of Lower Saxony, claiming 3.256 billion euro (3.61 billion dollars) in damages. The law firm representing the institutional investors said this action was intended to clarify if VW breached its duty to the capital markets between June 2008 and September 18, 2015, the crucial date when the scandal became public. “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 defence until now, it was necessary to file this first multi-billion-euro lawsuit,” lawyer Andreas Tilp said in a statement, the same attorney who in October filed a lawsuit on behalf of retail investors.
Another legal blow will also hit Volkswagen soon, as the German insurer Allianz plans to file a lawsuit in the few next weeks for compensation over the falling shares, a person familiar with the situation told Reuters. “It will happen within this month,” the source said. If it is to happen, this move will represent the first such action from a major German company against the automaker.