Volkswagen has a 10 million euro settlement at the hands of former leader Martin Winterkorn
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Volkswagen will recommend to shareholders to accept a settlement of about 10 million euros from former leader Martin Winterkorn, according to people familiar with the matter.
The German carmaker announced in March that this would be the case seek damages From Winterkorn, head of the previous group in the 2015 diesel emissions scandal.
The affair with software that reduced vehicle emissions testing by 11 million has cost VW more than 32 billion euros in fines and legal fees so far.
Volkswagen’s decision to sue Winterkorn who resigned shortly after the scandals broke out, the Gleiss Lutz law firm came after an extensive report on Dieselgate by the law firm this year.
The report, commissioned by VW’s supervisory board, concluded that the company’s first positions had “breached irresponsible obligations”.
In terms of volume, the world’s second-largest automaker reported that Winterkorn had been aware of the existence of illegal software since July 27, 2015, but did not “clarify the circumstances” of its use.
In addition, VW said the former chief “did not ensure that the questions asked by U.S. authorities in that context were answered truthfully, fully and without delay.”
VW’s supervisory board has concluded that former Audi chief executive Rupert Stadler has breached his duties, as have four other directors. Stadler denies the wrongs.
Winterkorn has dismissed allegations of wrongdoing. Lawyers acting on his behalf told Dieselgate in March that he “did everything necessary and did not rule out anything that he would have done … to prevent or minimize the damage caused.”
Over the weekend, agreements reached with all defendants in March were discussed at a meeting of the VW supervisory board and the proposals will be presented to shareholders next month at the company’s annual general meeting.
Business Insider reported the 10 million euro settlement with Winterkorn for the first time. VW confirmed the decisions of the supervisory board, but declined to comment on the specific details of any agreement.
Winterkorn has several allegations of fraud and will be tried in Germany this September. He has also been indicted in the US, but is unlikely to be tried there because Germany does not extradite citizens. He denies the allegations.
Stadler is on trial in Munich in a case that is set to continue for several months.
At its meeting, VW management also voted to recommend the extension of Hans Dieter Pötsch’s term of office, as he took over as president of the company after the 2015 scandal.
Last year, VW He agreed to pay fines of 9 million euros In July 2015, Pötsch and current chief executive Herbert Diess, who joined VW in July 2015, accused themselves of manipulating the market in the wake of the Dieselgate scandal.
German prosecutors charged the couple with charges of withholding information about the existence of fraudulent devices, thereby “illegally influencing the company’s share price.”
VW’s shares fell more than 40 percent after the scandal was cleared, eliminating billions of euros in market value.
The company said the allegations against Pötsch and Diessen were unfounded.
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