After losing money over the diesel crisis, many shareholders in Volkswagen seek compensation and plan to sue the company because of the scandal.
More trouble ahead for Volkswagen in financial terms, as its shareholders are not happy at all with loosing tones of money over the cheating scandal. And this is quite understandable after the carmakers’ shares value plunged since the September disclosures. Volkswagen’s shares have lost almost a third of their value, or about 22 billion euros (24 billion dollars). Consequently, 66 institutional investors from the United States and Britain are now claiming hundreds of millions of euros in damages. The shareholders are represented by the Nieding + Barth law firm, which said on Monday it would lodge a case with a regional court in Brunswick, Germany, this week. “On top of that, we collected several thousands of private investors. Therefore, we think we are the biggest platform for suits against Volkswagen in Germany,” said Klaus Nieding of the firm.
The German automaker is facing legal battles on several directions. The US owners of the affected diesel cars are expected to claim billions of dollars in compensation, while the US Justice Department filed this month a civil complaint against Volkswagen, Audi and Porsche for alleged Clean Air Act Violations. The later could have massive financial repercussions, as VW could in theory face fines exceeding 48 billion dollars. There were also other reports pointing out more lawsuits, with the litigation finance group Bentham Europe saying in November it was in contact with VW’s top 200 investors about launching a damages claim in Germany as soon as February, and with German lawyer Andreas Tilp in October who filed a lawsuit on behalf of retail investors.