Company - - Sep 14,2018
Volkswagen undergoes a court trial in Germany over a vast diesel scandal that has brought the investors to hunt the carmaker for about €9.2bn (£8.2bn) in damages.
It has been actively stated by the investors that Volkswagen should have cleared the clouds of uncertainty concerning the emissions scandal earlier before the case had to be dragged to the court.
VW shares dropped after the discovery in 2015 that the company’s diesel technology produced unlawful levels of pollution.
Shareholders representing 1,670 claims are looking for compensation for almost 40% slide in Volkswagen's share price generated by the emission scandal, which got expose in September 2015. Till date, it has costed the company €27.4bn in fines and penalties.
Andreas Tilp, lawyer for the appellants, said "VW should have told the market that they cheated," while addressing the Braunschweig higher regional court. He further added, VW should have declared the issue by June 2008 that they weren’t able to make the technology which was required in the United States.
The criminal probe involves a legal action which has been taken up by the Deka investment fund; it is being used a model for an additional 1,600 lawsuits.
Former executives from VW, Porsche as well as their subordinate company Audi are targeted under criminal investigation held in Germany.
Volkswagen has already suffered a fine worth €1bn by German prosecutors due to its diesel scandal. Moreover, the car maker has even paid a fine worth $4.3bn in the U.S for resolving civil and criminal penalties.