Factbox-The state of legal cases in VW’s diesel scandal
11:56 am Tuesday, June 27th, 2023
HAMBURG (Reuters) – Former Audi boss Rupert Stadler was handed a suspended sentence of one year and nine months by a German court on Tuesday for fraud over Volkswagen’s 2015 diesel scandal, becoming the first former board member to receive such a sentence.
The fallout from the German auto group’s manipulation of diesel engine emissions tests, which shook the industry almost eight years ago, has been keeping many courts busy ever since.
Below is an update on various legal proceedings:
FRAUD TRIAL IN BRAUNSCHWEIG AT A STANDSTILL
Four current or former Volkswagen managers and engineers have been standing trial at the regional court in Braunschweig, northern Germany, since September 2021 on charges of group and commercial fraud.
The trial has dragged on for so long because numerous witnesses refused to testify. Even after more than 70 days of hearings, there is no end in sight. The proceedings against former Volkswagen CEO Martin Winterkorn, who resigned a few days after the scandal came to light in September 2015, were separated due to his state of health. It is unclear whether the 76-year-old will ever stand trial. DAMAGES CLAIMS In addition, there are a large number of civil proceedings in which both investors and diesel car owners are making claims for damages. The most prominent is a lawsuit brought by fund manager Deka Investment in the higher regional court in Braunschweig.
The plaintiffs, mostly institutional investors, accuse Volkswagen and its parent company Porsche SE of keeping information about the emissions scandal secret for a long time.
The overall claims amount to around 9 billion euros ($9.9 billion). If Deka wins the case, plaintiffs then have to assert their claims there separately. CONSUMER PROTECTION GROUP CLAIM SETTLED Three years ago, a case brought by consumer protection groups ended in a settlement. Volkswagen had to provide a total of 830 million euros of compensation for hundreds of thousands of diesel customers.
EMISSIONS DEVICES – ROOM FOR INTERPRETATIONS
One key area of dispute is around devices used in diesel engines that only regulate emissions at certain temperatures. This case differs from the diesel scandal, where Volkswagen admitted wrongdoing, as automakers dispute allegations they use the devices improperly to mask the true pollution levels of their vehicles. Germany’s highest federal court recently changed its stance on these devices following a ruling by the European Court of Justice. This improves the chances of compensation for owners of vehicles with such devices. Volkswagen, Audi and Mercedes-Benz are potentially affected. However, any liability is yet to be clarified. There are more than 100,000 cases still pending at the highest court itself and numerous courts across Germany. $32 BILLION COMPENSATION COSTS
Volkswagen made the biggest payout over its diesel scandal in the United States, where the environmental authorities revealed its emissions test cheating in September 2015. So far, the company has paid out more than 32 billion euros, mainly in fines and damages in the U.S.
($1 = 0.9137 euros)
(Reporting by Jan Schwarz; Writing by Andrey Sychev; Editing by Mark Potter)
