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Volkswagen's Holding Company Sued by Shareholders Over Dieselgate

On September 18, 2015, the world was shaken to the core by the Dieselgate emissions scandal. After almost a year after everything went south for the German manufacturer, investors have decided to sue the holding company that controls VW.
VW logo 1 photo
As it was expected from such a massive scandal, investors aren’t happy at all with the losses they’ve sustained over the turbulent period that has passed since the wrongdoing came to light. As per a report published by Automotive News, holding company Porsche SE is being sued by the investors for not divulging the financial risks of the emissions scandal.

In this regard, law firm Nieding + Barth has filed a dozen lawsuits up to this moment in time, all of them against Porsche SE. Three more suits were submitted by Andreas Tilp, a lawyer who has represented numerous other investors over disclosures in the hard-knock world of the capital market. Naturally, this follow-up doesn’t bode well for the holding company that controls 52.2% of the Volkswagen Group’s voting shares.

A spokesman told the cited publication that Porsche SE considers “all complaints to be unfounded,” highlighting that a holding company has nothing to do with the operating business of Volkswagen. The thing is, the spokesman is half right, chiefly because stockholders who own voting shares have the right to vote on matters of corporate policy.

While shareholders don’t actively manage a corporation, shareholders appoint the board of directors to oversee the operating business. More to the point, the people who make decisions in the Volkswagen Group were handpicked by Porsche SE, which is controlled by the Piech and Porsche families.

Other than this falling out between shareholders and Porsche SE, the holding company and VW further face 80 lawsuits at the regional court in Stuttgart. Close to its first anniversary, the scandal is far off from its conclusion.

 

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