FRANKFURT, Germany (AP) — A German court says it has added staff and storage space to handle the flood of investor lawsuits against Volkswagen.

The regional court in Braunschweig said Wednesday it has received 1,400 lawsuits seeking 8.2 billion euros ($9.2 billion).

On Monday alone, 750 lawsuits arrived from a single law office as a possible one-year deadline to file approached.

Institutional and individual investors claim Volkswagen did not disclose in a timely way that it faced costly action from U.S. regulators over cars with software that enabled them to cheat on diesel emissions tests.

They say the information could have enabled them to decide whether to sell their shares, which fell sharply after the U.S Environmental Protection Agency announced the case on Sept. 18, 2015.

Volkswagen says it met all its disclosure duties. </s> Volkswagen faces 8.2 billion euros ($9.14 billion U.S.) in damage claims from investors over its emissions scandal in the legal district where the carmaker is based, a German court said.

A total of about 1,400 lawsuits have been lodged at the regional court in Braunschweig near Volkswagen’s (VW) Wolfsburg headquarters, the court said on Wednesday.

The Braunschweig court said it received some 750 lawsuits on Monday alone, which marked the first business day after the one-year anniversary of VW’s diesel emissions test-rigging scandal.

It said it brought in extra staff to process the suits submitted by shareholders concerned that Sept. 18, the day VW’s manipulations were uncovered a year ago, may be the deadline to file. </s> It represented one of the biggest corporate settlements of any kind. The action by U.S. District Judge Charles Breyer in San Francisco marked a pivotal moment for VW as it aims to move past a scandal that has engulfed the company since it admitted in September 2015 to installing secret software in diesel cars to cheat exhaust emissions tests and make them appear cleaner than they really were.

Hinrich Woebcken, president and CEO of Volkswagen Group of America Inc, called final approval of a settlement first announced in June "an important milestone in our journey to making things right in the United States," and pledged to carry out the terms "as seamlessly as possible."

Breyer turned away objections from car owners who thought the settlement did not provide enough money, saying it "adequately and fairly compensates" them. In addition to the pre-scandal "trade in" value of the vehicle, owners will receive $5,100 to $10,000 in additional compensation.

"Given the risks of prolonged litigation, the immediate settlement of this matter is far preferable," Breyer wrote.

The settlement was reached with the U.S. Justice Department, Federal Trade Commission, the state of California and vehicle owners who had filed a class action lawsuit against the world's No. 2 automaker. VW has admitted to misleading regulators and still faces an ongoing criminal investigation.

Volkswagen agreed to spend up to $10.033 billion on the buybacks and owner compensation and $4.7 billion on programs to offset excess emissions and boost clean-vehicle projects.

VW may also be allowed to repair vehicles if regulators approve fixes. The affected vehicles emit up to 40 times legally allowable pollution levels.

It represented the largest civil settlement worldwide ever reached with an automaker accused of misconduct.

While huge, the approved deal was still smaller than the $246 billion settlement reached by cigarette makers with 46 U.S. states in 1998 and the $53 billion by BP to address costs and penalties arising from the 2010 Gulf of Mexico oil spill.

In total, Volkswagen has agreed to date to spend up to $16.5 billion in connection with the scandal, including payments to dealers, states and attorneys for owners. The scandal rattled VW's global business, harmed its reputation and prompted the ouster of its CEO.

The settlement covers 2.0-liter polluting diesel Beetle, Golf, Jetta, Passat and Audi A3 cars from the 2009 through 2015 model years. Up to 490,000 people will take part in the settlement because some vehicles had multiple owners.

Volkswagen spokeswoman Jeannine Ginivan said the automaker expects to begin buying back vehicles in mid-November. VW has hired 900 people, including one to be stationed at each dealership, to handle buybacks.

VW still faces billions more in costs to address 85,000 polluting 3.0 liter vehicles and Justice Department fines for violating clean air laws. It also faces lawsuits from at least 16 U.S. states for additional claims that could hike the company's overall costs.

Last month, a Volkswagen engineer pleaded guilty to helping the company evade U.S. emission standards. His lawyer said he would cooperate with federal authorities in their criminal probe.

In 2013, a non-profit group commissioned researchers at West Virginia University to test diesel car emissions, and found excess emissions in two VW diesels. After the U.S. Environmental Protection Agency and California spent more than a year trying to understand the cause, VW admitted last year it secretly installed software to turn off emissions equipment in real-world driving.

"Today is a landmark day, when this innovative settlement can be put into action, investing billions of dollars into public health protections to remedy these serious violations," Cynthia Giles, the EPA's assistant administrator, said.

VW will provide $2 billion over 10 years to fund programs to promote construction of electric vehicle charging infrastructure, development of zero-emission ride-sharing fleets and other efforts to boost sales of cars that do not burn petroleum.

Volkswagen has been in intensive talks over how much compensation it may offer owners of the larger 3.0 liter diesel Porsche, Audi and Volkswagen vehicles that emit up to nine times legally allowable emissions and whether it will offer buybacks for some of the polluting SUVs but no final agreement has been reached. Volkswagen faces a Nov. 3 court hearing to update the court on those vehicles' status.

Volkswagen agreed to make up to $1.21 billion in payments to 652 U.S. VW brand dealers and $600 million to 44 U.S. states to address some state claims.

Nearly 340,000 owners have registered to take part in the settlement. About 3,500 owners have opted out. Volkswagen must fix or buy back 85 percent of the 475,000 vehicles under the agreement by June 2019 or face additional costs. </s> WASHINGTON (Reuters) - A U.S. judge on Tuesday approved one of the biggest corporate settlements on record, Volkswagen AG’s (VOWG_p.DE) $14.7 billion deal arising from its diesel emissions cheating scandal, and the German automaker said it would begin buying back polluting cars in mid-November.

U.S. District Judge Charles Breyer in San Francisco signed off on VW’s settlement with federal and California regulators and the owners of the 475,000 polluting diesel vehicles in a pivotal moment for the world’s No. 2 automaker as it tries to move past a scandal that has engulfed it for more than a year.

VW admitted in September 2015 to installing secret software in its diesel cars to cheat exhaust emissions tests and make them appear cleaner in testing than they really were. In reality, the vehicles emitted up to 40 times the legally allowable pollution levels.

Volkswagen CEO Matthias Mueller told reporters in Berlin that Breyer’s approval was “an important milestone for us on the way towards clearing up the problem that we caused some time ago.” Hinrich Woebcken, president and CEO of Volkswagen Group of America, pledged to carry out the terms “as seamlessly as possible.”

Breyer turned away objections from car owners who thought the settlement did not provide enough money, saying it “adequately and fairly compensates” them. Owners will get the pre-scandal “trade in” value of the vehicle and $5,100 to $10,000 in additional compensation.

“Given the risks of prolonged litigation, the immediate settlement of this matter is far preferable,” Breyer wrote.

Volkswagen agreed to spend up to $10.033 billion on the buybacks and owner compensation and $4.7 billion on programs to offset excess emissions and boost clean-vehicle projects.

The settlement was reached with the U.S. Justice Department, Federal Trade Commission, the state of California and vehicle owners who had filed a class action lawsuit against VW. Volkswagen has admitted to misleading regulators and still faces an ongoing criminal investigation.

It represented the largest civil settlement worldwide ever reached with an automaker accused of misconduct.

While huge, the approved deal was still smaller than the $246 billion settlement reached by cigarette makers with 46 U.S. states in 1998 and the $53 billion by BP to address costs and penalties arising from the 2010 Gulf of Mexico oil spill.

An American flag flies next to a Volkswagen car dealership in San Diego, California, U.S. September 23, 2015. REUTERS/Mike Blake/File Photo

In total, Volkswagen has agreed to date to spend up to $16.5 billion in connection with the scandal, including payments to dealers, states and attorneys for owners. The scandal rattled VW’s global business, harmed its reputation and prompted the ouster of its CEO.

The settlement covers 2.0-liter polluting diesel Beetle, Golf, Jetta, Passat and Audi A3 cars from the 2009 through 2015 model years. Up to 490,000 people will take part in the settlement because some vehicles had multiple owners.

Volkswagen spokeswoman Jeannine Ginivan said the automaker expects to begin buying back vehicles in mid-November. VW has hired 900 people, including one to be stationed at each dealership, to handle buybacks.

MORE COSTS FOR AUTOMAKER

VW still faces billions more in costs to address 85,000 polluting 3.0-liter vehicles and Justice Department fines for violating clean air laws. It also faces lawsuits from at least 16 U.S. states for additional claims that could hike the company’s overall costs.

Last month, a Volkswagen engineer pleaded guilty in Detroit to helping the company evade U.S. emission standards. His lawyer said he would cooperate with federal authorities in their criminal probe.

Kathryn Phillips, California director for the Sierra Club environmental group, said Volkswagen broke the law and that “Judge Breyer is making them pay the price. Volkswagen chose to poison our families with dangerous pollution just to pad its pocketbook.”

“Today is a landmark day, when this innovative settlement can be put into action, investing billions of dollars into public health protections to remedy these serious violations,” added Cynthia Giles, U.S. Environmental Protection Agency assistant administrator.

VW will provide $2 billion over 10 years to fund programs to promote electric vehicle charging infrastructure, development of zero-emission ride-sharing fleets and other efforts to boost sales of cars that do not burn petroleum.

Volkswagen has been in intensive talks over how much compensation it may offer owners of the larger 3.0-liter diesel Porsche, Audi and Volkswagen vehicles that emit up to nine times legally allowable emissions and whether it will offer buybacks for some of the polluting SUVs. No final agreement has been reached. Volkswagen faces a Nov. 3 court hearing to update the court on those vehicles’ status.

Slideshow (2 Images)

Volkswagen agreed to make up to $1.21 billion in payments to 652 U.S. VW brand dealers and $600 million to 44 U.S. states to address some state claims.

Nearly 340,000 owners have registered to take part in the settlement. About 3,500 owners have opted out. Volkswagen must fix or buy back 85 percent of the 475,000 vehicles under the agreement by June 2019 or face additional costs.

Owners have until September 2018 to submit paperwork to sell back vehicles. VW will have to destroy repurchased vehicles unless it wins approval for fixes. </s> FRANKFURT, Germany (AP) — A German court says it has added staff and storage space to handle a flood of 1,400 investor lawsuits against Volkswagen seeking damages worth 8.2 billion euros ($9.2 billion).

The regional court in Braunschweig said Wednesday that on Monday alone, 750 lawsuits arrived from a single law office as a possible one-year deadline to file approached.

Institutional and individual investors claim Volkswagen did not disclose in a timely way that it faced costly action from U.S. regulators over cars with software that enabled them to cheat on diesel emissions tests.

They say the information could have enabled them to decide whether to sell their shares, which fell sharply after the U.S Environmental Protection Agency announced the case on Sept. 18, 2015.

Lawyers have said the courts may eventually find that investors had one year to file suit after the EPA announcement; the anniversary fell on a Sunday, leaving Monday as the possible deadline and leading some plaintiffs to file in order to be on the safe side.

Volkswagen says it met all its disclosure duties. The company says that ahead of the EPA announcement it still appeared as if the diesel violation could be resolved by working with authorities and paying a relatively modest fine in the area of $100 million or less.

Instead, the company has wound up setting aside more than 18 billion euros ($20 billion) thus far to cover fines and consumer claims. </s> Image copyright PA

Volkswagen is facing €8.2bn ($9.1bn; £7bn) in damages claims from 1,400 German investors over its emissions scandal, a state court has said.

The regional court in Braunschweig near VW's Wolfsburg headquarters said it received 750 lawsuits on Monday alone.

A year ago, an investigation in the US found that VW had cheated emissions tests for diesel cars by using special software.

VW faces a flood of actions and has set aside €16.2bn to cover the lawsuits.

The court said it brought in extra staff to process the claims submitted by shareholders, who were concerned that 18 September, the day VW's manipulations were uncovered a year ago, may be the deadline to file.

It said most of the cases were bundled actions containing claims from multiple plaintiffs, in many cases private investors.

Shareholder claims

The scandal broke after an investigation found that many Volkswagen cars being sold in America had software in diesel engines that could detect when they were being tested.

The so-called "defeat device" changed the performance of the engines accordingly to improve results.

The German car giant admitted cheating emissions tests in the US and this summer agreed to pay $10.2bn to settle some of its US claims.

Image copyright AFP

Earlier this month, Australia launched legal action against the carmaker and last week asset manager Blackrock and a group of institutional shareholders said they would sue VW for €2bn.

The German states of Hesse and Baden-Wuerttemberg have said they will also take legal action.

The 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% of their value, and are still down by about 28%

Hesse finance minister Thomas Schaefer said the fall in VW's share price had cost the state about €3.9m.

Criminal probe

Earlier this month, a VW engineer pleaded guilty to involvement in the scandal.

James Liang, a German national, pleaded guilty to violation of the clean air act, a wire fraud count and a consumer fraud count and became the first to be charged as part of the US Justice Department's year-long criminal probe into the firm's rigging of federal air-pollution tests.

He could face five years in prison, although by co-operating with the US federal government he could reduce his jail time.

His trial will be held in January. </s> Volkswagen and its former chief executive have been sued by the US Securities and Exchange Commission over claims they failed to disclose to investors that diesel vehicles violated emission standards.

It is the latest twist in a software cheating scandal that has cost the company $30bn (€26.4bn).

The German carmaker sold billions of dollars of corporate bonds and asset-backed securities in the US, from 2010 to 2015, while concealing its emissions-cheating scheme, according to the complaint filed by the regulator in San Francisco’s federal court.

The case, also filed against ex-CEO Martin Winterkorn, could give fresh impetus to similar efforts for redress from European investors.

“The investors did not know that VW was lying to consumers to fool them into buying its ‘clean diesel’ cars and lying to government authorities, in order to sell cars in the US that did not comply with US emission standards,” the SEC alleged.

VW said the SEC complaint is “legally and factually flawed” and the company will “contest it vigorously.”

It accused the Commission of “piling on to try to extract more from the company”, more than two years after settlements with the Justice Department.

“The SEC has brought an unprecedented complaint over securities sold only to sophisticated investors, who were not harmed and received all payments of interest, and principal, in full and on time,” spokesman Christopher Hauss said.

“The SEC does not charge that any person involved in the bond issuance knew that Volkswagen diesel vehicles did not comply with US emissions rules, when these securities were sold, but simply repeats unproven claims about Volkswagen’s former CEO, who played no part in the sales,” he added.

Allegations that VW wrongfully withheld information about the emission software used in its diesel cars have loomed over the company since the scandal first broke, in 2015. The crisis involved as many as 11m diesel cars worldwide and has cost the Wolfsburg-based company €28bn.

A court in the German city of Braunschweig is assessing a group action, covering suits brought by thousands of investors with claims totaling more than €9bn. It has scheduled the next hearing for March 25.

German prosecutors are also carrying out a criminal investigation into whether current chief executive, Herbert Diess, chairman, Hans Dieter Poetsch, and Mr Winterkorn informed investors too late about VW’s diesel breaches and their potential impact. </s> SAN FRANCISCO: A US judge on Tuesday granted final approval for a $14.7 billion class action settlement in Volkswagen’s diesel emissions cheating scandal, the largest such automaker settlement in history.

The buyback deal at the same time also resolved some claims brought by US and California environmental regulators who had sought penalties for Volkswagen’s violations of pollution laws.

“Final approval of the 2.0 liter TDI settlement is an important milestone in our journey to making things right in the United States and we appreciate the efforts of all parties involved in this process,” Hinrich Woebcken, president and CEO of Volkswagen Group of America, said in a statement.

The settlement offers compensation to nearly a half-million owners of polluting Volkswagen and Audi diesel-powered vehicles in the US which the German automaker has admitted configuring to deceive emissions tests. This allowed some cars to emit almost 40 times the permissible levels of harmful nitrogen oxides.

Owners of 2.0 liter diesel-powered cars will be eligible for buybacks, penalty-free lease terminations or free modifications to fix the vehicles’ emissions. All participants will also receive cash payments.

In addition to $10 billion for compensation to owners, Volkswagen will create a $2.7 billion fund for environmental remediation, and provide $2 billion to promote the use of “zero emissions” vehicles within the United States.

“The settlement adequately and fairly compensates class members,” US District Judge Charles Breyer wrote in an opinion approving the deal.

“While plaintiffs might ultimately prevail on their claims, the settlement provides benefits much sooner than if litigation were to continue. Moreover, litigation would cause additional environmental damage that the settlement otherwise reduces.”

Breyer had granted preliminary approval for the settlement in July, praising the “enormous efforts” by all sides to reach an agreement and avoid a trial.

Volkswagen’s parallel agreement with US authorities will require it to modify or remove 85 percent of the vehicles from the roads by June 2019 or face steep additional penalties.

California will receive about $1.2 billion to mitigate environmental damage caused by the pollution, of which $381 million will fund projects to reduce smog, such as creating incentives for cleaner heavy-duty vehicles, according to the California Air Resources Board.

“Today is a landmark day, when this innovative settlement can be put into action, investing billions of dollars into public health protections to remedy these serious violations,” Cynthia Giles, head of enforcement at the US Environmental Protection Agency, said in a statement.

Breyer’s rulings were a major step in the German automaker’s efforts to move past the scandal and revive sagging sales after admitting to the deceptive practices in the production of some 11 million vehicles worldwide.

But the costs of the scandal have been considerable. Volkswagen reported a 1.6 billion euro ($1.74 billion) net loss for 2015, its first in more than two decades. The company has booked 18 billion euros to cover repairs, buy-backs and legal costs for the scandal, but commentators have said the final amount could be much higher.

The company is in talks with US federal prosecutors to settle criminal allegations related to the emissions cheating. Prosecutors last month indicted James Liang, a Volkswagen engineer, who has pleaded guilty and agreed to cooperate as the United States builds its case.

Volkswagen also still needs to conclude a separate settlement in the United States concerning about 80,000 Volkswagen, Audi and Porsche cars with 3.0 liter engines equipped with the emissions cheat devices.

The company has been far less generous in Europe, pledging to bring affected cars there into compliance by next year. The company also faces billions of dollars in damage claims from investors. AFP </s> WASHINGTON (Reuters) - Volkswagen AG (VOWG_p.DE), in another step to move past its costly diesel emissions cheating scandal, has agreed to pay $175 million to U.S. lawyers suing the German automaker on behalf of the owners of 475,000 polluting vehicles, two people briefed on the agreement said on Friday.

A VW sign is seen outside a Volkswagen dealership in London, Britain, November 5, 2015. REUTERS/Suzanne Plunkett/File photo

In August, the lawyers in the class action litigation sought up to $332.5 million in fees and costs for their work in a $10 billion settlement that gives U.S. owners of 2.0 liter polluting cars the ability to sell back their vehicles to Volkswagen (VW).

The latest deal with the lawyers means VW now has agreed to spend up to $16.7 billion to compensate U.S. owners and address claims from states, federal regulators and dealers arising from the “Dieselgate” scandal.

The amount to be paid out to lawyers was first reported by Reuters on Friday.

The resolution of legal fees clears another hurdle as the world’s No. 2 automaker looks to resolve all of the outstanding aspects of a scandal that disrupted its global business, hurt its reputation and led to the ouster of its chief executive officer last year.

VW in September 2015 admitted using sophisticated secret software in its cars to cheat exhaust emissions tests, with millions of vehicles worldwide affected. The cheating allowed VW’s U.S. vehicles sold since 2009 to emit up to 40 times legally allowable pollution levels.

The $175 million includes attorneys’ fees and other costs, according to the sources, who spoke on condition of anonymity.

Lawyers for the owners of polluting vehicles and a spokeswoman for Volkswagen declined to comment.

Lead plaintiff lawyer Elizabeth Cabraser, who is part of a committee of 22 lawyers overseeing the owner suits, said in August the amount sought in attorneys fees was far less than the “judicially established benchmark” for class actions of approximately 25 percent of the settlement amount.

U.S. District Judge Charles Breyer on Tuesday is set to hold a hearing in San Francisco on whether to grant final approval of the vehicle owners’ settlement announced in June, which would be the largest-ever automotive buy-back offer in the United States. Breyer must also decide whether to approve the legal fee agreement.

VW has agreed to spend up to $10.033 billion to buy back the vehicles and compensate owners. It may also offer vehicle fixes if regulators approve. Under a timetable announced this summer, regulators could approve a fix for some 2015 VW diesel vehicles as early as next month.

In addition, VW has agreed to pay up to $1.21 billion to compensate U.S. VW brand dealers, pay more than $600 million to 44 U.S. states, spend $2 billion on zero-emission vehicle promotion and infrastructure, and another $2.7 billion to offset diesel pollution.

It still faces billions of dollars in potential fines from the U.S. Justice Department in its criminal probe into VW’s cheating scandal, and must resolve the fate of larger vehicles that were not part of the initial $10 billion settlement.

VW and U.S. regulators are in continuing discussions over whether the automaker should agree to buy back 85,000 larger 3.0-liter Porsche, Audi and VW vehicles that also exceeded U.S. emission standards, and whether it should offer additional compensation to those owners.

VW may have to pay additional owner attorneys’ fees as part of a separate potential 3.0-liter settlement, the sources said.
Litigants file a new wave of lawsuits against Volkswagen regarding its emissions scandal.