Allianz prepares legal action against Volkswagen over emissions scandal losses
German insurer Allianz is set to seek compensation from Volkswagen, joining a wave of investors claiming damages after the automaker’s share price collapse in the wake of the diesel emissions scandal.
Allianz, one of Europe’s largest insurers, is preparing to file a lawsuit against Volkswagen seeking compensation for losses suffered after the automaker’s shares plunged following the September 2015 diesel emissions scandal. The move would make Allianz the first major German company to take legal action against Volkswagen in its home market over investor losses tied to the crisis.
Allianz Global Investors, the asset management arm of the insurer, confirmed it had not yet filed an action but said it was considering a claim as part of its responsibility to act in the best interests of its investors. The company signalled that any compensation would benefit its managed funds, which suffered as Volkswagen’s market value collapsed in the wake of the emissions revelations.
The emissions scandal broke in September 2015 when Volkswagen admitted to manipulating diesel engine software to cheat emissions tests. The disclosure triggered a sharp fall in the company’s share price and exposed Volkswagen to a wave of lawsuits from investors, dealers and regulators worldwide. Allianz’s planned action follows similar moves by other investors, but as a major German institution, its involvement marks a new stage in domestic legal pressure on Volkswagen.
Legal and regulatory fallout continues
Volkswagen’s legal troubles have not been limited to Germany. In France, prosecutors have opened a formal investigation into suspected aggravated fraud related to the emissions case. French authorities launched a preliminary inquiry in October 2015, with police searching Volkswagen’s French offices and seizing computers as part of the probe. Nearly 950,000 Volkswagen vehicles in France were equipped with the EA 189 engines at the centre of the emissions manipulation, according to prosecutors.
- Allianz would join a growing list of investors seeking damages from Volkswagen.
- US Volkswagen dealers have also filed lawsuits over losses tied to the scandal.
- French prosecutors are investigating Volkswagen for suspected aggravated fraud.
For Volkswagen, Allianz’s move signals that investor litigation is not confined to foreign claimants or small shareholders. The prospect of a lawsuit from a prominent German insurer increases the pressure on Volkswagen’s management as it continues to address the legal, regulatory and financial consequences of the diesel emissions crisis.
