The NEXT Shoe To Drop For Volkswagen's Dieselgate Scandal — An $11 BILLION Dollar Investor Lawsuit

Volkswagen faces a trial next week as investors seek 9.2 billion euros ($10.7 billion) in compensation arguing that the carmaker should have informed shareholders about a diesel pollution scandal before regulators did in September 2015.

The lawsuit bundles 1,670 claims brought mainly by VW’s institutional shareholders who have accused the carmaker of failing to inform investors about the scope of a scandal which has cost the company 27.4 billion euros in penalties and fines.

Had VW warned investors about the size of the scandal before the U.S. Environmental Protection Agency (EPA) issued a “notice of violation” on Sept. 18 2015 then institutional investors may have avoided losses on their shareholdings, plaintiffs said...
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PUGPROUD - 9/11/2018 11:59:21 PM

+1 Boost

When this scandal first hit VW estimated its total cost to resolve at $5 billion. Its already spent $31.75 billion and there is no definitive end in sight yet. These types of issues have long tails and can last for a decade or more. My personal estimate has always been a tab for VW of $60 billion before it is all put to bed.

TomM - 9/12/2018 6:54:08 AM

+3 Boost

And this suit in particular - is an indicator of what Elan Musk has to look forward to based on his ill-advised false buyout claims that never materialized. VW has been able to weather the storm because it makes and has made Profit - will Tesla be able to do the same?

MDarringer - 9/12/2018 8:36:16 AM

-2 Boost

VW deserves all the losses it suffers. VW has remained arrogant and unrepentant all through this. I agree with the $60B estimate. When VW surfaced the $5B number I immediately thought that they did the cheat device and had even gone so far as to calculate a payout should they have been caught.