German state of Bavaria will sue Volkswagen for dieselgate

9 years ago - Published in Finance, Fundamental Analysis

The Bavarian Government will cause to Volkswagen. The fall in the price of the automaker's shares in Wurzburg, it said in a statement, determined by dieselgate, damages the Bavarian pension funds. Bavaria's state pension fund for civil servants lost as much as 700,000 euros ($ 783,580.00) after VW shares plunged in the wake of the Sept. 18 revelation by U.S. regulators of the carmaker's manipulation.

Europe's largest automaker is also caught up in legal action in the United States, South Korea and elsewhere and is facing billions of dollars in costs related to its emissions test manipulations, making it the biggest scandal in VW's history.

"Bavaria must sue Volkswagen," Bavarian finance Minister Söder said, adding that the suit would be filed by September. "We are legally committed to our employees. It's about legal rights, which we are now asserting."

Bavaria is the first German state to initiate a lawsuit. If the claim is successful, it could set a precedent for other shareholders to sue as well. VW declined to comment.