Investors are seeking €9.2 billion in compensation from Volkswagen AG as a result of the automaker's diesel emissions scandal, which has cost the company €27.4 billion so far, Reuters reported Sept. 10.
Andreas Tilp, a lawyer representing the plaintiffs, reportedly said VW should have informed the market "no later than June 2008" that it could not meet U.S. emissions standards legally.
Plaintiffs maintain that they did not know of the issue until the U.S. Environmental Protection Agency issued a notice of violation on September 2015, the report said. They also insisted that the company knew of the criminal activity yet said nothing to investors.
However, VW lawyer Markus Pfueller reportedly told the higher regional court of Braunschweig that Volkswagen, while admitting to systematic emissions cheating, "complied with its disclosure obligations to shareholders and the capital markets." In addition, according to a court filing, VW reportedly did not see the need to tell investors about the situation because the company was already in talks to reach a settlement before the EPA notice arrived.
Meanwhile, presiding Judge Christian Jaede said that only some of the 1,670 claims will be taken into account due to the statute of limitations, the report added.
Jaede reportedly also said it was unclear if the installment of the cheating software in vehicles was done to keep investors unaware. The judge sees the period from early 2014 as critical to the case because that was when employees had learned that tests showed Volkswagen diesel cars gave off toxic nitrogen oxide when driven on the road.