German automaker Volkswagen (VW) is on unsteady ground after many of its private investors file a class action against them in light of the 2015 clean emissions scandal. The plaintiffs in the lawsuit had purchased $8 billion of VW’s private debt in or around 2014 under the belief that by using clean diesel the company would emerge as the world’s largest and most ecofriendly car manufacturer. After the United States Environmental Protection Agency (EPA) discovered in late 2015 that most VW vehicles had cheat devices – something that would trigger clean emissions only when the car was being smog tested – it became clear that this goal would not come to fruition.
When VW had officially and openly admitted to using the defeat devices intentionally, the value of the bonds purchased by the private investors plummeted within a week. On average, each bond’s fell 4.23%. While this number may seem minor, it is quite large considering how much money each private investor put into the company, which they had believed to be operating on good faith.
The suit alleges that Volkswagen knowingly deceived its private investors for a bailout of debt while simultaneously reaching the U.S. capital markets to raise money there. With the debt eliminated and finances collected elsewhere, the plaintiffs in the lawsuit should actually have the ability to gain what they are suing for, rather than trying to get water from a dry well, so to speak. The class action seeks compensation that will pay for damages, interests, and any fees relevant to litigation.
More Lawsuits from More Upset Investors
Private investors are not the only ones who are bringing VW to court for their “clean” diesel emission engine scandal. The California State Teachers’ Retirement System has brought its own lawsuit for nearly $8 million after it purchased stock on behalf of its investors; their claim states the stock price had gone up due to people believing the clean diesel advertisements but, had they been honest, the price should have been much, much lower.
This is surely only the beginning for the legal troubles VW will face over its less-than-legitimate decision to falsify its emission test claims. In fact, many individuals who purchased Volkswagen vehicles in the past several years have been offered a small settlement from the automaker as an apology of sorts, but they should not accept it. Upon closer review, the couple thousands VW is offering does not cover everything it should, and more lawsuits could be filed.
If you have received such a settlement offer from VW, you should call 888.577.8520 to reach Richard C. Dalton, LLC. Our Volkswagen claims attorney can help you determine how to file a lawsuit for appropriate and maximized damages. Contact us now to schedule a free case evaluation.