Volkswagen Jetta CKD 15

Volkswagen’s institutional investors have filed a multi-billion dollar suit against the automaker. The lawsuit claims that there were breaches of its stock market duty concerning the dieselgate scandal, Reuters reports.

Claimed damages amounting to USD$3.6 billion (RM14.9 billion) was filed at a regional court in Lower Saxony, Germany and is being brought upon by some 278 investors worldwide. Some of these institutions include German insurers and US pension fund Calpers.

In the lawsuit, law firm TISAB highlighted that Volkswagen had failed to keep markets properly informed between June 2008 and September 18, 2015. Meanwhile, a motion for a “model claims” – a German legal procedure – has also been tabled.

diesel-cap

An account of events leading to the violation of US emissions law that was publicly announced by the US Environmental Protection Agency (EPA) was published earlier this month by Volkswagen. In it, it appeared that the company was aware of the issue well ahead of the EPA announcement.

“Due to the fact that – according to our information and experience – Volkswagen AG persistently denies any settlement negotiations and also refuses to waive the statute of limitation defence until now, it was necessary to file this first multi-billion euro lawsuit,” said Andreas Tilp, a lead lawyer from TISAB.

This is not the first lawsuit that the embattled automaker has been slapped with. Earlier this year, the Department of Justice filed a court action against the company. The lawsuit amounting to USD$90 billion (RM343 billion) was filed on grounds that the carmaker attempted to cheat its way past the nation’s Clean Air Act with emissions-manipulating devices.

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