Volkswagen Prepping For Wave of Institutional Investor Lawsuits


Since the U.S. Environmental Protection Agency (EPA) announced Volkswagen AG had used a “defeat device,” as defined by the U.S. Clean Air Act, in a portion of its diesel automobiles, the stock has taken a significant hit. Shareholder losses have been estimated at €40 billion. The legal liability appears to go back to 2009, adding to the legal woes of the automobile manufacturer. Furthermore, Volkswagen had marketed these diesel automobiles to environmentally-conscious consumers. These diesel vehicles are said to be emitting nitrous oxide up to 40 times what is allowable by U.S. federal law. Some of these diesel models include: Jetta, Beetle, Audi A3, Golf and Passat. Law firms are lining up to gather shareholders in what could be a massive lawsuit. Law firms such as Robbins Geller Rudman & Dowd LLP have announced class actions on behalf of investors against Volkswagen.

Multiple Fronts

Some law firms are also trying to represent the buyers of these vehicles. Law firms Kessler Topaz Meltzer & Check, LLP and Grant & Eisenhofer’s Consumer Protection and Products Liability Group are pursuing legal action against Volkswagen. In September, Seattle-based Keller Rohrback L.L.P. filed a class action lawsuit against Volkswagen Group of America, Inc. and Volkswagen AG on behalf of consumers who purchased Volkswagen vehicles tied to the diesel scandal.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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