Automotive industry

Diesel-gate: VW strain pattern method

In Germany, the pending actions for damages by investors against Volkswagen in the diesel scandal can be resolved in a pattern process. This procedure is, however, complex and time-consuming.

Volkswagen shareholders who sue because of the exhaust-scandal damages, may be set to a pattern process. The regional court of Braunschweig announced on Monday that it had adopted a so-called template decision; this is the first step on the way to a capital investor sample procedure. Responsible for the higher regional court of Braunschweig.

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In an exemplary case, a higher regional court will select an exemplary action of many similar cases, in order to clarify this dispute in advance of important issues as an example. This pattern of decision is then used in all other cases, as a template for the lower instances.

The suing shareholders and bondholders will see in the course of the affair to manipulated emission of capital market legal information values of violated obligations. The VW share price crashed after the outbreak of the exhaust-affair, many investors do not want their losses from the company reimburse. Your Argument that VW would clearly need to be informed about the problems, because the price reductions were threatened. VW is Convinced to have all the rules for the provision of Information to capital markets are complied with. Whether it was a fact, will not be quick to clarify.

Potential claimants are now under time pressure

Investor advocates stressed on Monday, not just those VW shareholders would benefit from the model procedures, which would have made their claims in a timely manner before the courts. This haste was of the essence, as is to be expected with the opening of the pattern procedure, “prior to the expiration of the limitation period.” This period may end at 18. In September, a year after becoming aware of the exhaust-scandal – finally, this is not a certainty but still.

Had VW been waiting for too long?

With the original decision, the district court has made Braunschweig the way for the pattern of proceedings against VW. “This is the start,” said judge Maike Block-Cavallaro on Monday. After the price losses in the Wake of the Diesel scandal, the 170-approved actions for damages, a dispute with a total value of almost four billion euros.

As the time window for the official start of the pattern process is aiming for “at the earliest” by the end of 2016. “It is a matter of a time framework – this is not to say, however, that it occurs,” said Block-Cavallaro with regard to the comprehensive and lengthy procedures. Thereafter, it is determined a pattern to the plaintiff. The bundling of the higher court instance is about the capital investors ‘ test cases act (KapMuG). It opens up the opportunity to represent other cause before the higher regional court proceedings and to resolve disputes

dk/hmf (dpa/rtr/dpa)