Shareholders’ $10.4B suit against Volkswagen opens

Trial proceedings have begun in the lawsuit brought against Volkswagen by investors alleging the company did not give them timely notice of its scandal over cars rigged to cheat on diesel emissions tests.

Investors are seeking almost

$10.4 billion, saying Volkswagen didn’t give them the information they needed to decide what to do with their shares before the scandal became public. The U.S. Environmental Protection Agency accused Volkswagen in September 2015 of manipulating diesel emissions, sending the shares sharply lower.

The case that opened Monday in front of the higher regional court in Braunschweig involves claims from investors that will serve as a model for further cases, the dpa news agency reported. The model case involves claims of $4.6 billion from Deka Investments and other shareholders.

The company says it met its duty to inform investors in time.

In a setback for investors, Presiding Judge Christian Jaede indicated claims involving company actions before the middle of 2012 could be excluded.

Volkswagen has admitted rigging engine control software in the U.S. to turn down emissions controls when vehicles were not being tested. That way they passed certification tests but spewed up to 40 times the U.S. limit of harmful nitrous oxides during everyday driving.