Former Volkswagen And Audi Bosses To Pay Millions Over Dieselgate Scandal
Former bosses of German car giants Volkswagen and Audi will pay millions in compensation for their roles in the Dieselgate scandal. The payments come as part of a €288m (£248.5m) deal, with €270m of this sum coming from the directors’ and officers’ liability insurances.
Aman Johal, Lawyer and Director of Yours Lawyers commented: “We welcome the news that former bosses of Volkswagen and Audi will face financial penalties concerning the ‘Dieselgate’ scandal for the vehement breach of their duty of care under stock corporation law. It is important that the individuals responsible no longer hide behind the corporate veil.”
It was back in March that Volkswagen first announced it would seek damages from Audi chair Rupert Stadler and Professor Martin Winterkorn. Following an investigation, Volkswagen said that both Stadler and Winterkorn had breached their duty of care under stock corporation law. Stadler will pay €4.1 million, while Winterkorn is expected to pay €11.2 million after prosecutors on Wednesday charged the former boss with providing the German parliament with false testimony over the scandal.
The scandal arose after it was admitted that illegal software had been used to rig US diesel engine tests and has cost the German car manufacturer over £32 billion in fines, legal costs, and refits.