|Published : 16 Sep 2016, 12:54:36|
Blackrock to sue Volkswagen over emissions scandal
Asset manager Blackrock and a group of institutional shareholders are to sue car maker Volkswagen for €2 billion over its emissions scandal.
Investors, including sovereign wealth funds and pension funds, are expected to file a complaint in a court in Braunschweig, Germany, on Friday.
They are to claim that VW failed to disclose its use of software defeat devices on diesel cars in a timely way.
VW has faced a flood of legal actions over the scandal.
In September 2015 the US Environmental Protection Agency found that many diesel VW cars had a software "defeat device" that could detect emissions testing and change how the car performed to improve the test results.
The shareholder claims relate to the drop in Volkswagen's share price after the scandal broke.
Between September and October 2015, Volkswagen AG preference shares lost about 45 per cent of their value, and are still about 28 per cent down, according to BBC.