66 institutional investors team up against Volkswagen
Volkswagen can expect a lawsuit in the next week. 66 institutional investors have said to take legal action against the carmaker for the losses suffered as a consequence of Diesel Gate, the scandal in which VW tried to manipulate emission tests using malicious software.
A single institutional investor will first file the claim. The investor is from the US and is filing the claim in Germany. Klaus Nieding, the investor’s lawyer at Nieding and Barth, said that his client suffered a big loss as a consequence of Volkswagen’s actions. Most likely, the other 65 investors will join their colleague. The German law firm will use capital market model claims, which are similar to the US collective lawsuits. In these claims, the court rulings won by individual investors can be used as a template for others to determine their compensation.
After the news came out that Volkswagen had installed so-called defeat devices in their diesel cars in order to pass the emission tests, Volkswagen shares plunged significantly. Shareholders want to retrieve the billions of euros that they have lost due to this plunge. Shares of the German car brand have gone down almost a third (or 22 billion euros) since the news came out.
And investors are not the only ones seeking compensation for their losses. Car owners in the US who have been tricked into buying a more polluting car than they wanted are also expected to file a total of billions of dollars in law suits against Volkswagen. This claim will be filed on top of the 46 billion dollars VW will have to pay under the Clean Air Act. According to law firm Nieding and Barth, Volkswagen was fully aware of its actions and should have been open about it to the public in an earlier stage.