VW’s situation is going from bad to worst. Following the outbreak of the emissions cheating scandal in September 2015, the German carmaker is now declared personae non-grata in Luxembourg pension fund.
The Grand Duchy’s Compensation Fund (set up to hold Luxembourg’s excess pension revenues) has added VW to its exclusion list due to the company’s involvement in the violations of environmental norms.
This reaction from a player in the financial market is not the first one. In September 2015, already, Nordea Asset Management forbade its fund managers from making investment in VW due to the emissions cheating scandal. In fact, the company’s share price went down by 11% since September 2015.
Besides this impact on investments and the drop of the company’s share price, VW is facing legal actions.
In Germany, investors have brought an action against VW. They claim that they have suffered billion of euros in losses due to the fall in VW’s share price. In the same line, BlackRock (the world’s largest fund house and the second largest private investors in VW’s no voting preference shares) joined 80 other investors in a lawsuit demanding 2 billion euros to VW.
In Germany, Martin Winterkorn (VW’ former Chief executive) is accused of fraud by German prosecutors and the German authorities have searched 28 homes and offices of people in connection with the scandal. Martin Winterkorn may have known about the manipulating device sooner that he admitted in front of the German parliamentary Committee of inquiry.
BETTER FINANCE decided to join the Stichting Volkswagen Investors' Claim in order to obtain redress for VW investors. To join this legal action and to stay informed, you can register with BETTER FINANCE who will put all Volkswagen Investors in touch with DSW and the Stichting Volkswagen Investors' Claim.
Calling on all VW investors - Volkswagen Investor Claims: registration
Read the Financial Times articles here