VW dealt blow in emissions case as judge questions memo
Volkswagen (VW) was dealt a series of blows on the second day of hearings in a €9bn investor lawsuit tied to the diesel emissions scandal as judges questioned some of the car maker’s key arguments. Presiding judge Christian Jaede in Braunschweig took issue with VW’s longstanding claim that it put off disclosure of the US diesel probe because its lawyers had said fines were unlikely to affect the share price. The judge cited an August 2015 letter by law firm Kirkland & Ellis, and said the lawyers tried to be vague but discussed the potential penalties. ’By no means could you infer from that memo that VW could expept leniency,’ Jaede said on Tuesday. ‘The court leans to the view that you couldn’t expect a fine that’s not material to the stock price, given that VW had concealed the manipulations for more than a year in the talks with the authorities.’ Investors are claiming VW should have released information about its use of a so-called defeat device that rigged emissions tests as ear...
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