On 18 September, 2015, the US Environmental Protection Agency (EPA) issued a notice of violation (NOV) of the US Clean Air Act (CAA) to several entities. Those entities included Volkswagen AG, Audi AG and the Volkswagen Group of America, Inc. The notice relates to the improper use of software devices to circumvent EPA emission standards for certain diesel cars. EPA determined that the software could shut down emission controls during normal operation. This “defeat device” was allegedly installed in several VW models. According to news reports, the investigations could technically result in fines of up to $18 billion in the USA.
VW said today that as many as 11 million diesel cars worldwide were equipped with a particular engine type that could skew emissions data, as the pollution cheating scandal escalates. The automaker also said it was setting aside €6.5 billion in provisions in the third quarter to cover potential costs resulting from the scandal. It also confirmed it would have to adjust its profit targets for the current year.
The announcement has so far sent VW shares down 37% on the Frankfurt stock exchange. That has wiped out €24 billion in market value so far, as the inquiry into rigged air-pollution counter-measures widens. VW’s US head Michael Horn admitted the company had “totally screwed up” and vowed to make amends.
A class action suit is pending against VW in Germany to recover losses incurred by investors. Ogier Leman’ Financial Services Litigation Team is working with our German colleagues in respect of this action.
Claims can be made by any investor who purchased VW ordinary or preferred stock between 1 January, 2009 and 20 September, 2015 and held these shares until 20 September, 2015. Losses are calculated by determining the difference between the highest stock price on Friday 18 September, 2015 (common stock XETRA: 166,10 EUR) and the lowest stock price on Monday 21 September, 2015 (common stock XETRA until 2pm: 125,40 EUR).
Ogier Leman provide a boutique offering specialising in financial services law provided by litigation experts. We have the requisite experience in practice and procedure in the Commercial Court, the Supreme Court and the Court of Justice of the European Union. We know how to effectively manage every stage of the litigation process and how to remove entire tranches of costs for you. We have acted successfully for and against financial institutions in Ireland and the UK.