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Germany court: Volkswagen facing over $8 billion in claims
Germany court: Volkswagen facing over $8 billion in claims

A German court said [press release, in German] Wednesday that Volkswagen (VW) [corporate website] faces over USD $8.2 billion in damage claims from investors over its emissions scandal. Roughly 1,400 lawsuits have been filed [Fortune report] at the Braunschweig court near VW’s Wolfsburg headquarters. Plaintiffs allege [AP report] that VW did not inform shareholders quickly enough of the impending scandal. The biggest single claim was filed for over €3.3 billion on behalf of institutional investors. The court is still processing claims as many plaintiffs rushed to file before the one-year anniversary of the scandal on September 18. VW may need to set aside more than the USD $18 billion that they already designated to cover the cost of vehicle refits and a settlement with US authorities.

VW is facing legal difficulty around the world over the emissions scandal. Earlier this month the Australian Competition and Consumer Commission sued [JURIST report] VW and its local subsidiary for misleading customers. In August a district court in Germany ruled [JURIST report] that a collective complaint against VW may move forward. Like US-style class-action lawsuits, the collective complaint was launched on behalf of multiple investors who lost money following the diesel emissions cheating scandal. In July a judge for the US District Court for the Northern District of California gave preliminary approval [JURIST report] to a $15 billion settlement between VW and the US Environmental Protection Agency, California officials and consumers. In June VW agreed [JURIST report] to spend up to $14.7 billion to settle allegations of cheating emissions tests and deceiving customers in a settlement with US regulators. In March the US Federal Trade Commission filed suit [JURIST report] against VW for false advertising.