Court rules for investors in Volkswagen diesel suit
Legal Compliance
A court in Germany has ruled that Volkswagen's parent company must pay 47 million euros ($54 million) in damages to investors for not making a timely disclosure of its scandal over cars rigged to cheat on diesel emissions tests.
The dpa news agency reported that the Stuttgart court announced the verdict Wednesday against Porsche SE, which holds 52 percent of the voting rights in Volkswagen.
The company said it would appeal and called the claims "without merit."
News of the scandal broke in September 2015 but the plaintiffs argued that Volkswagen's top management knew about the troubles earlier. Former Volkswagen CEO Martin Winterkorn exercised his legal right not to testify.
The case comes in addition to investor suits against Porsche SE and Volkswagen before a court in Braunschweig, Germany. Porsche said it was "convinced that the rulings will not be sustained in a second-instance ruling."
Porsche said higher courts had ruled that the Stuttgart court should have decided the case by its full chamber, not by a single judge. It cited what it said were existing rulings by other courts that proceedings should be stayed while a so-called model case is pending before the Braunschweig court to prevent conflicting decisions on the same issues. Porsche said that the actions "are without merit and the claims raised do not exist."
German securities law requires companies to disclose information that could significantly affect the stock price so that investors can decide whether or not to sell their holdings.
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Nicholas C. Minshew, Attorney at Law, concentrates his practice in the area of Family Law including divorce, separation, child support, child custody, alimony, division of property, separation agreements, domestic violence, prenuptial agreements, and child support enforcement & modification. Mr. Minshew provides legal services to clients in Washington, D.C., and throughout Maryland, including Montgomery County, Frederick County, and Prince George’s County. Mr. Minshew obtained his Juris Doctorate degree from the American University, Washington College of Law in 2000, where he worked as an editor for the Administrative Law Review. After receiving his law degree, Mr. Minshew worked as an attorney for the global law firm of Morgan, Lewis & Bockius LLP, and for Leonard Street & Deinard LLP representing companies in Federal proceedings. During that time, Mr. Minshew redirected his focus to provide legal services directly to individuals and families.