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In the midst of the many legal battles and billions of dollars in settlements and fines being paid out so far in the U.S., Volkswagen Executives are facing criminal charges for their alleged roles in the Volkswagen Emissions Scandal too.
It has been reported that six top executives have been accused of a decade-long conspiracy to create the software for their vehicles to cheat official testing. U.S. federal authorities have issued indictments for the executives to be extradited to the U.S. for Trial.
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When former VW CEO, Martin Winterkorn, resigned following the emissions scandal in 2015, I’m sure he didn’t expect to be defending a lawsuit himself.
A U.S. District Judge has ruled that Mr Winterkorn must defend a suit that is brought by American pension fund investors. The suit alleges that VW are guilty of not warning or informing the market/investors ‘in a timely fashion’ about the emission scandal; instead leaving investors to find out about their pension funds after the scandal had been publicised and splashed across the news.
Following the publication of VW’s emissions scandal in September 2015, the lawsuit notes that VW’s market value for shares fell by $63 billion (£52 billion).
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The German VW investigations have reached another development as VW’s chairman of the supervisory board, Hans Dieter Potsch, has allegedly violated securities laws, which is being investigated in the criminal probe launched earlier this year in June.
The ongoing headache for the German car giants isn’t set to end anytime soon. With 11 million vehicles affected worldwide, this is one of the biggest scandals in history, and the importance of both civil claims and criminal investigations has never been more prominent.
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Seven months on from the breaking of the Volkswagen Emissions Scandal and here’s the state of play:
But…
Yes, you read that right! Despite the PR nightmares and failed assurances, the VW bosses at the top are still going to receive millions in bonuses despite Volkswagen being at the centre of the one the biggest scandals in history.
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