U.S. judge dismisses excess emissions VW bondholder lawsuit

A U.S. judge has dismissed a lawsuit filed by institutional investors who purchased bonds from Volkswagen AG’s U.S. unit

Investors bought £6.01 billion in dollar-denominated bonds Volkswagen Group of America Finance LLC sold in 2014 and 2015. A group of those investors sued the company after it admitted in September 2015 to secretly installing software to evade emissions rules for at least six years that led to the ouster of its chief executive, damaged the company’s reputation and prompted massive bills.

U.S. District Judge Charles Breyer in San Francisco dismissed the class-action suit against VW, its U.S. unit and former chief executive Martin Winterkorn. Breyer had ruled in July the case could go forward but reconsidered his decision after VW lawyers raised a new ruling by a federal appeals court in a case involving Barclays.

The investors alleged damages into the hundreds of millions of dollars after the bonds’ value dropped. Breyer gave the investors 30 days to file an amended complaint, but he said they will face a“heavy burden” to demonstrate they meet legal requirements.

Published: by Radio NewsHub
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