Skip to main content
MENU
Subscribe
  • Sign Up Free
  • LOGIN
  • Subscribe
  • Topics
    • Alternatives
    • Consultants
    • Coronavirus
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Face to Face
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Opinion
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Russia-Ukraine War
    • SECURE 2.0
    • Special Reports
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • Climate Change: The Inescapable Opportunity
    • Impact Investing
    • 2022 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2022 Defined Contribution East Conference
    • 2022 DC Investment Lineup Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Performance Data
    • P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
    • Future of Investments Research Series
    • Charts & Infographics
    • Polls
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2023 Defined Contribution East
    • 2023 ESG Investing
Breadcrumb
  1. Home
  2. COURTS
March 15, 2016 01:00 AM

Volkswagen sued by 278 institutional investors, including CalPERS

Bloomberg
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Bloomberg

    Volkswagen AG was sued for €3.3 billion ($3.7 billion) over how the company informed markets about devices used to hide pollution in diesel engines, its biggest legal challenge in Germany to date after a wave of lawsuits in the U.S. on the scandal.

    The case was filed Monday in Braunschweig on behalf of 278 institutional investors from around the world, including the $285.7 billion California Public Employees' Retirement System, Sacramento, lawyer Andreas Tilp said by telephone. The suit claims VW failed to publish information about the emissions scandal in a timely manner, Mr. Tilp said.

    The case comes almost six months after Volkswagen admitted it installed software in its diesel vehicles to cheat emissions testing, a scandal that's rippled through the global car industry. Seventy cases are pending in Braunschweig over losses on VW shares, seeking between €600 and €2 million plus the action filed Monday, the court said in a statement. The company also faces a multitude of lawsuits in the U.S. as well as criminal probes in various countries.

    Because Volkswagen has refused to take part in settlement negotiations and won't waive a statute of limitations defense, it was necessary to file the lawsuit, Mr. Tilp said.

    Eric Felber, a spokesman for Wolfsburg-based VW, declined to comment on the lawsuit until the company had seen a copy of the complaint.

    VW stock declined 2.9% to €112.20 at 1:15 p.m. in Frankfurt. The shares have fallen 16% this year.

    The scandal was first made public by U.S. authorities on Sept. 18. VW reacted with a news release two days later and a formal market disclosure on Sept. 22.

    In a response to other suits pending at the court, VW has argued that its reactions were timely and in line with rules. Before the scandal became public, VW's advisers said the matter could be “contained by measures that were common in such cases,” and thus appeared to be neutral in regard to the company stock price, the company argued.

    Mr. Tilp has represented investors in many German cases over capital market disclosure issues. His firm represents investors suing Porsche SE for a combined €2.6 billion.

    Among the plaintiffs in the new VW case are investors from Australia, Austria, Canada, Denmark, France, Italy, Japan, Luxembourg, the Netherlands, Norway, Sweden, Switzerland, the U.K., the U.S. and Taiwan. These groups include 17 German investment management companies as well as insurance companies and CalPERS, Mr. Tilp said.

    Another 20 institutional investors seeking more than €1 billion are in talks with the firm about an additional lawsuit, Mr. Tilp said.

    Mr. Tilp filed the first individual shareholder case against VW on Oct. 1. The lawyer has asked the court to open test-case proceedings. If the request is granted, all capital market cases will be jointly heard in a special procedure before the Braunschweig Higher Regional Court in the German state of Lower Saxony.

    Related Articles
    Volkswagen's stock drops 29.4% in 2 days following emissions controversy
    VW might be dropped by Swedish state pension funds
    CalSTRS to join lawsuit against Volkswagen
    Norway sovereign wealth fund will seek to join class action against Volkswagen
    Equity and bondholders file lawsuits against Volkswagen in U.S., Germany
    VW suit maps out new route in U.S. courts
    Pension funds' Volkswagen lawsuit may proceed in U.S., court rules
    Recommended for You
    courtroom gavel books 1550_i.jpg
    ERISA lawsuit against Olin Corp. dismissed again
    ONLINE_180629880_AR_0_EJBZKXTYSLGZ.jpg
    Judge throws out most ERISA violation allegations against Schneider Electric Holdings
    University_of_Southern_California_i.jpg
    University of Southern California settles 6-year-old ERISA lawsuit, avoiding trial
    Research for Institutional Money Management
    Sponsored Content: Research for Institutional Money Management

    Reader Poll

    January 25, 2023
    SEE MORE POLLS >
    Sponsored
    White Papers
    The Future of Infrastructure: Building a Better Tomorrow
    Fulcrum Issues: Equity Returns and Inflation — Choose Your Own Adventure
    What Matters Most in Considering a Private Debt Strategy
    Why pursue direct lending in the core middle market?
    Research for Institutional Money Management
    Are Factors a Thing of the Past?
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    December 12, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Coronavirus
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Face to Face
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Opinion
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Russia-Ukraine War
      • SECURE 2.0
      • Special Reports
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • Climate Change: The Inescapable Opportunity
      • Impact Investing
      • 2022 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2022 Defined Contribution East Conference
      • 2022 DC Investment Lineup Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Performance Data
      • P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
      • Future of Investments Research Series
      • Charts & Infographics
      • Polls
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2023 Defined Contribution East
      • 2023 ESG Investing