Scandal-hit Volkswagen has got another jolt, as nearly 300 of its institutional investors have filed a multi-billion dollar lawsuit against the global automobile major.
The law firm representing the investors said that the carmaker has violated the capital market rules in the emissions scandal. The lawsuit is seeking damages to the tune of $3.61bn, Reuters reported.
The investors, who have filed a lawsuit at a regional court in Braunschweig in VW's home state of Lower Saxony, include German insurers and U.S. pension fund Calpers.
Law firm TISAB said that the lawsuit was to know whether the firm had ignored its capital market responsibilities during the June 2008 to 18 Sept 2015 period.
Lawyer Andreas Tilp said in a statement: "Due to the fact that - according to our information and experience - Volkswagen AG persistently denies any settlement negotiations and also refuses to waive the statute of limitation defense until now, it was necessary to file this first multi-billion euro lawsuit."
Tilip said that the lawsuit was joined by investors from 14 countries, including the US, Australia, Germany, Canada, the Netherlands, and the UK.
The Associated Press quoted an attorney with Tilp's firm Marc Schiefer as saying: "They should have told the markets that something was not working with their diesel technology."
As per the German securities law, companies should inform the investors about the developments that could a significantly negative impact on share prices.
Nearly 11 million cars are reported to have been affected by Volkswagen emission scandal. Last year, the company said that it had used a software to clear emissions tests in the US.
