Hamilton Journal News

Volkswagen seeks damages tied to diesel scandal

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BERLIN — Volkswagen is seeking damages from two former top executives for their role in the diesel emissions scandal that cost the German automaker billions of euros and a hefty dent in its reputation.

VW said after a board meeting Friday that it wants damages from ex-chief executive Martin Winterkorn and Rupert Stadler, the former head of its Audi brand, “on account of breaches of the duty of care under stock corporatio­n law.”

The company didn’t specify the amount of damages it would seek.

Volkswagen paid more than 31 billion euros ($37.5 billion) in fines and court settlement­s and two executives went to prison in the United States.

VW said a law firm the supervisor­y board tasked with investigat­ing liability issues reviewed millions of documents, conducted hundreds of interviews and “concluded that negligent breaches of duty had occurred” by the two executives.

The probe found that Winterkorn allegedly “breached his duties of care by failing, in the period from 27 July 2015 on, to comprehens­ively and promptly clarify the circumstan­ces behind the use of unlawful software functions” in 2.0 TDI diesel engines sold in the North American market between 2009 and 2015.

The company alleged that Stadler too breached his duties of care with regard to diesel engines developed by Audi that were installed in several of the company’s European vehicles.

Further claims for damages are also being made against lower-ranking former VW managers, the company said.

Winterkorn currently faces a criminal fraud case over the emissions scandal that came to light in September 2015 after the U.S. Environmen­tal Protection Agency said Volkswagen used illegal engine software to have vehicles pass emissions tests.

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