Bondholders file proposed class action against Volkswagen – CNBC
“At the same time that Volkswagen was deceiving U.S. investors and regulators with its rigged emissions systems, it was raising billions of dollars from investors in the U.S. capital markets,” Thomas A. Dubbs, a partner with Labaton Sucharow, said in the statement.
Volkswagen did not immediately respond to a request for comment.
The German automaker misled bondholders by failing to disclose that it had used a device in some of its diesel cars that allowed them to temporarily reduce emissions during testing, which increased sales, the complaint, filed in the U.S. District Court of Northern California, claims.
The company, which faces a slew of litigation in Germany and in the U.S. by car owners and shareholders, has set aside $18 billion to cover the cost of vehicle refits and a settlement with U.S. authorities after admitting in September to cheating U.S. diesel emissions tests.
In the United States, Volkswagen has until June 28 to reach a final diesel emissions settlement with government regulators and owners of nearly 500,000 2.0-liter vehicles.