Motoring: Bavaria to sue Volkswagen
Published 04/08/2016 | 02:30
The German state of Bavaria said it would sue Volkswagen for damages caused by its emissions-test cheating scandal, the first regional government in VW's home country to take legal action against the carmaker.
Bavaria's state pension fund for civil servants lost as much as €700,000 after VW shares plunged in the wake of the September 18 revelation by US regulators of the carmaker's manipulation, a spokeswoman at the Bavarian finance ministry said.
Bavaria, home to German blue-chip companies including BMW, Siemens and Allianz, owned about 58,000 VW preference shares when news of the scandal broke, she said.
Europe's largest carmaker is also caught up in legal action in the United States, South Korea and elsewhere and is facing billions of dollars in costs related to its emissions-test manipulations, making it the biggest scandal in VW's history.
Bavaria's pension fund lost out from the fall in the shares, Bavarian Finance Minister Markus Soeder said. "We want this money back," said Soeder, a member of the Christian Social Union sister party of Chancellor Angela Merkel's Christian Democrats. (Reuters)