Volkswagen holding company avoids ‘dieselgate’ lawsuit
FRANKFURT: A German court ruled Wednesday the holding company that controls Volkswagen does not have to face a 900-million-euro ($975-million) lawsuit from investors over the “dieselgate” emissions-cheating scandal.
The dieselgate scandal erupted in 2015 when the German auto giant admitted to manipulating 11 million vehicles to make them seem less polluting in lab tests than they actually were on the road.
The court in the southern city of Stuttgart decided that Porsche SE, the holding company, does not have to face the suit for failing to inform markets about the use of a device illegally installed in the vehicles.
Judges rejected the arguments of the plaintiffs, who were claiming about 900 million euros.
They had argued that Porsche SE knew what was happening because some Volkswagen executives were also members of the holding company’s board of directors, and should have warned investors.
The scandal triggered massive falls in the share price of both Volkswagen and Porsche SE.
In a statement welcoming the ruling, the holding company said the court decided that “knowledge about the events at Volkswagen cannot be attributed to Porsche SE”.
The decision is “a clear confirmation of its view that the claims… in relation to the diesel issue are unfounded”, it added.
The plaintiffs have the right to appeal to a higher court.
The “dieselgate” scandal shocked Germany and is seen as the country’s biggest post-war industrial scandal.
Years on, it is still causing the 10-brand Volkswagen group legal headaches, and has cost them more than 30 billion euros in damages, refunds and court fees.
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