Norway fund called the Norges Bank Investment Management, one of the largest shareholders of the German car manufacturer, will be filing a class-action lawsuit against Volkswagen.
This will be an additional lawsuit that is being faced by the car manufacturer over the emissions scandal. The company admitted last year that they have installed a software that will cheat U.S. emission tests, BBC reported.
A spokeswoman for the fund said in a statement that Norges Bank Investment Management intends to join a legal action against Volkswagen because they have been advised by their lawyer that the company's statements over the emission scandals gives way to legal claims under German law, Ejinsight reported. The spokeswoman added that their company being an investor in the company makes them responsible for safeguarding the fund's holding in Volkswagen.
The legal action against the carmaker will reportedly take place in Germany and will be filed in the coming weeks. Norges Bank Investment Management said las year that the actions of Volkswagen over the emissions scandal has resulted to a loss of 4.9 billion crowns for the second quarter of the fund. The company is then seeking compensation for the damage caused by the emissions scandal that Volkswagen is facing.
The fund is worth $850 billion and has stakes in more than nine thousand companies. Norges Bank Investment Management is the fourth largest shareholder of the carmaker, Financial Times reported.
Volkswagen has already put aside around 16.2 billion euros to pay for the scandal and the German carmaker also reached a deal with the United States authorities. The agreement was to offer substantial compensation and car buy-back deals over around half a million of the diesel cars. Volkswagen also offered to set up environmental and consumer compensation funds. The final details about the agreement are expected to be released this June.
Accordingly, Norges Bank Investment Management has informed the supervisory board chairman of Volkswagen, Hans Dieter Pötsch, of their decision regarding the lawsuit. However, Volkswagen has not yet released any statement regarding the matter.
There are several class-action lawsuits in the U.S. and Germany as well as in the Netherlands surrounding the German automaker. Volkswagen is also being sued by the US Department of Justice, the Federal Trade Commission and its own dealers.
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