News Shares

Porsche SE Sued for Diesel Scandal

Sponsored

Volkswagen’s largest shareholder, Porsche SE, is being sued over the car manufacturing company’s diesel emissions. 

The plaintiffs are undisclosed at the time of this article, but claim to be shareholders of Volkswagen AG. The lawsuit was revealed in the company’s half-year report. A similar suit in 2018 required testimony from various former Volkswagen executives.

The lawsuit follows Volkswagen’s admission of cheating diesel engine emission tests in 2015. To date, it has cost the manufacturer more than 32 billion Euros in fines and legal costs. It appears that the scandal continues to run up Volkswagen’s bill. This is in addition to the 4.1 billion Euros in shareholder claims that Volkswagen has been saddled with. In July, Volkswagen settled claims filed by shareholders against former executives, including previous CEO Martin Winterkorn.

While the claim of the lawsuit is not clear, it was filed in the Supreme Court of the State of New York and appears to seek damages. It also includes complaints against former members of the management boards of Porsche SE and Volkswagen.

As of 2019, Volkswagen owned 70% of America’s passenger-car diesel market. It installed deceitful software on about 11 million of its cars worldwide that used alternative inputs to circumvent a diesel emissions standard set by the Environmental Protection Agency. The technology also allowed Volkswagen to pass of its engines as using ‘clean diesel.’

Some Audi and Porsche models also use the same software to skirt EPA regulations.

In 2016, a U.S. District Court Judge ordered Volkswagen to issue a nearly $15 billion USD settlement and notified current owners of a $10 billion USD buyback program.​​ Through the end of that same year, roughly 75% of owners affected indicated their interest in being compensated for Volkswagen’s violation.

Bosch, the issuer of the software, also settled for nearly $328 million USD in the same year.

Currently, Porsche SE stock is expected to continue a steady uprise of about 8% over the next year. Despite the lawsuit, historically Porsche SE is presenting a lower risk than usual. 

It is unclear if this lawsuit will impact Porsche SE’s stocks moving forward. In the past, public perception regarding the emissions scandal did not appear to weigh heavily on Volkswagen stocks. However, as the world increasingly trends towards environmental favoritism, Volkswagen may experience a different story this time.

Sponsored
Avatar

Michelle D. Madsen

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for Metanews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto exchange and forex brokers. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of Metanews as she has for the last decade.
Follow Me:

Related Posts