Volkswagen (Picture: Wikimedia Commons/The Car Spy) - Credit: Volkswagen logo (Picture: Wikimedia Commons/The Car Spy)
Dutch investors suing Volkswagen over diesel software fraud
Investors' association VEB filed a lawsuit against Volkswagen last week over the diesel software scandal on behalf of Dutch investors. In the days after the scandal was revealed, Volkswagen shares lost more than 35 percent of its value. According to the VEB, Volkswagen misled its shareholders with false and misleading statements. Volkswagen acted unlawfully towards its shareholders by making false and misleading statements about Volkswagen cars and their nitrogen dioxide emissions, while being aware that emissions results were manipulated by their software, according to the VEB. Their financial statements for 2008 to 2014 did not reflect actual sales and profits, obtaining results with tricks. The car manufacturer made the market and its shareholders believe that sustainability stood paramount, while knowing full well that this wasn't the case. The company made statements about its sustainability even two weeks before the scandal was revealed. "Through this deceit, investors acted at too-high share price in Volkswagen shares', the VEB writes. The association also accuses Volkswagen of withholding price sensitive information from its investors when the American authorities got wind of the fraudulent software in May 2014. "By using fraudulent software Volkswagen acted unlawfully not only against car owners, bu also to its own shareholders", the VEB writes.