VW investors seek $11 bln damages over dieselgate scandal

Record ID: 1355689

  • Title: VW investors seek $11 bln damages over dieselgate scandal
  • Date: 10th September 2018
  • Summary: BRAUNSCHWEIG, GERMANY (SEPTEMBER 10, 2018) (REUTERS) LAWYER REPRESENTING PLAINTIFFS AGAINST VW, ANDREAS W. TILP, ARRIVING IN COURTROOM, CARRYING CRATE WITH DOCUMENTS BEFORE OPENING BRIEFCASE WIDE OF LOCAL HALL TURNED COURTROOM WITH SCREEN READING BRAUNSCHWEIG HIGHER REGIONAL COURT / DEKA INVESTMENT GMBH / VOLKSWAGEN / PORSCHE SE PAN ACROSS LAWYERS SEATED OPEN METAL BOX ON
  • Embargoed: 24th September 2018 10:15
  • Keywords: lawyer start of trial judge VW Volkswagen scandal cheating emissions fraudulent
  • Location: BRAUNSCHWEIG, GERMANY
  • City: BRAUNSCHWEIG, GERMANY
  • Country: Germany
  • Topics: Crime/Law/Justice,Judicial Process/Court Cases/Court Decisions
  • Reuters ID: LVA0018X1LIYV
  • Aspect Ratio: 16:9
  • Story Text:Volkswagen went on trial on Monday (September 10) to face investors seeking 9.2 billion euros ($10.6 billion) in compensation, arguing the carmaker should have informed shareholders earlier about its diesel pollution scandal.
    Shareholders representing 1,670 claims are seeking compensation for a slide in Volkswagen's (VW) share price triggered by the scandal, which broke in September 2015 and has cost the firm 27.4 billion euros in penalties and fines so far.
    Presiding Judge Christian Jaede at the Braunschweig higher regional court will make opening remarks at the trial on Monday setting out the agenda and case priorities for the trial, which will then determine which witnesses may be called.
    Plaintiffs suing the carmaker said VW failed in its duty to inform shareholders about the financial impact of the scandal, which became public only after the U.S. Environmental Protection Agency (EPA) issued a "notice of violation" on Sept. 18, 2015.
    Had institutional investors known about VW's criminal activities they may have sold shares earlier or not made purchases, thereby avoiding losses on their shareholdings, plaintiffs said.
    VW shares lost up to 37 percent of their value in the days after authorities exposed illegal levels of pollution emitted from VW diesel cars.
    VW has admitted systematic emissions cheating, but denies wrongdoing in matters of regulatory disclosure.
    At 11:20 a.m. (0920 GMT), VW shares traded at 136.76 euros, up 0.5 percent.
  • Copyright Holder: REUTERS
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