In 2016, BETTER FINANCE joined the The Stichting Volkswagen Investors' Claim in order to help investors obtain redress for “Dieselgate” scandal (information can be found here) Now, time has come for high-ranking Volkswagen executives to testify in court in a case concerning the stock market fray between Volkswagen’s biggest shareholders. A German court will begin hearing evidence this coming Monday.
Volkswagen’s well-known emissions scandal from 2015 caused major losses for a number of investors. A subsidiary of the Elliott Management, one of the hedge funds who bet against Volkswagen shares, is bankrolling a group of institutional investors who are suing because of those loses.
Beyond a sense of justice, Elliott Management stands to gain up to 30 percent of any winnings, according to its subsidiary Bentham Europe. Volkswagen has already paid approximately €28 billion in settlements and fines over the diesel scandal; if they lose this latest case they will have to pay even more. The shareholders backed by Elliott Management are seeking €2 billion in damages, or about a fifth of the total claims.
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