VW faces compensation claims from 1,400 German investors, court says

Volkswagen faces demands for compensation totalling 8.2 billion euros (9.1 billion dollars) from about 1,400 investors as a result of the emissions testing scandal that has engulfed Europe's largest carmaker since last year, a German court said Wednesday.

The compensation demands come after VW shares lost more than 40 per cent of their value over about 11 months after it admitted a year ago to installing devices that cheated emissions tests in more than 11 million diesel vehicles around the world.

The claims were lodged mainly by private investors, the district court in the northern German city of Braunschweig said.

The lawsuits also include claims from an investment company, as well as institutional investors that have been bundled together, said the court, which is based near VW's headquarters in Wolfsburg.

Those launching the legal action claim VW failed in its duty to provide information to shareholders in a timely manner after the emissions scandal broke in September last year.

VW is also facing mounting legal costs from around the world, with compensation claims from the United States and those lodged in Braunschweig alone totalling 30 billion euros.

Meanwhile, another two German states said last Friday that they planned to sue the troubled carmaker for damages as a result of losses they suffered from shares in the group.

Both Hesse and Baden-Wuerttemberg said they were following up the move by the southern state of Bavaria in launching legal action against VW.

Last update: Wed, 21/09/2016 - 13:37
Author: 

More from Business

IMF raises China growth forecast, but warns of sharper slowdown

China's economy will expand by 6.5 per cent this year, the International Monetary Fund said on Monday, as it warned...

Trump's warning to German carmakers hits shares

Shares in German carmakers tumbled on Monday after incoming US president Donald Trump threatened the industry with...

Report: Ex-Volkswagen head knew about scandal two months before

Former Volkswagen chief executive Martin Winterkorn knew about the company's emissions scandal two months earlier...

Takata to pay 1-billion-dollar criminal fine over defective airbags

Beleaguered Japanese car-parts supplier Takata has agreed to pay a criminal penalty of 1 billion dollars, and three...

India's SpiceJet to buy 205 Boeing jets in 22-billion-dollar deal

Indian budget airline SpiceJet will purchase 205 planes worth 22 billion dollars from US manufacturer Boeing, one of...