As it was expected expiration of the 1 year period from the scandal related with the diesel emissions bring more than a thousand lawsuits form the investors of the group. Even though this “problem” erased 1/3 of the company market value, and it’s already agreed to pay billions of dollars in USA this new series of claims, more precisely around 1.400 according to the Court in Braunschweig, is worth 9.2 billion dollars. Argument on the investors side is that they lost their money on Volkswagen due to the company slow disclosing in the emission cheating issue
This situation was raised after investors concerns that one year after the will be the deadline for the filling the lawsuits in front of the court. Monday 19. September was the first working day after the anniversary of disclosure of the emissions scandal by U.S. regulators. About 11 million diesel vehicles were equipped with software to cheat on pollution tests.
U.S. Government among the suing investor – VW says that claims are unfounded
Almost 10.7 billion euros had been expected in the first 2 working days daws after the anniversary according to the lawyers announcement, and only for this the court will need about 4 weeks to register all the complains. However, it can be expected that the data will be wider, because it is more likely that more suits could still trickle and the end of it is still in the haze. but the lawyers
Among the investors who are suing is U.S. government, who is investigating company on its own institutions for possible criminal charges and it has not approved a fix for the tainted vehicles, but its case in front of the court in Germany was valued at 30 million Euros.
On the other hand, the point of view of the VW is that the claims are unfounded because their stand is that they were acted in compliant with the market rules.
Volkswagen shares rose less than 1 percent to 119.10 euros at the close of trading in Frankfurt. They’re still down 11 percent this year.
According to the Arndt Ellinghorst, an analyst at Evercore ISI, the number isn’t surprising, because some of the cases is already seen with a “buy” rating on the stock. “It will be difficult for the plaintiffs to prove that VW acted intentionally here” he said.
Volkswagen has set aside about 18 billion euros to cover the costs of the scandal, but the lawsuits won’t likely add to the tally in the near future. While the investors are going with their lawsuits in Braunschweig, consumers affected by the scandal are more focused on Brussels. Currently, the company is only offering repairs to European customers whereas Americans got packages worth thousands of dollars.