Law firm Maurice Blackburn launched a class-action lawsuit yesterday on behalf of Australian owners of scam-tainted Volkswagen AG (VW) vehicles, seeking total damages “well north” of A$100 million (US$71.59 million).
Volkswagen is embroiled in a global recall scandal and faces several class-action lawsuits, after tests showed that thousands of vehicles had been fitted with devices designed to mask the level of emissions.
More than 10,000 Australian owners have already registered for the class action that targets the German parent companies involved in the emissions scam, not just the local subsidiaries, Maurice Blackburn said.
Photo: Reuters
“I am extremely disappointed that, because of [Volkswagen’s] deceitful conduct, I’ve now got a car that is emitting dirty diesel,” Audi owner Robyn Richardson told a news conference in Sydney.
“I am here to bring them to account for what they’ve done. I’m here to deter other companies from behaving similarly,” said Richardson, one of the lead applicants for the class action in Australia.
Maurice Blackburn principal Jason Geisker said the litigation, on behalf of more than 90,000 car owners, is to seek to recover the full cost of the vehicle, plus damages for misleading and deceptive conduct, among others.
Volkswagen Group Australia (VGA) declined to comment on any “impending legal matters,” but apologized for any disappointment and inconvenience.
“VGA assures all its customers that the affected cars are technically safe and the necessary measures would be undertaken at no cost to them,” it said in a statement. “We will do everything we can to fix this problem and regain the trust of our customers.”
Volkswagen already faces a handful of shareholder lawsuits, including a securities-fraud class action in Virginia against its US divisions and a planned claim by Dutch investor association VEB on behalf of investors who bought VW stock through a Dutch bank or broker.
The company is also battling dozens of class actions accusing it of fraud for selling supposedly low-pollution, high-horsepower, fuel-sipping vehicles that have fallen substantially in value since the revelations.
Litigation funder Bentham Europe, a joint venture between the Australian IMF Bentham and US hedge fund Elliott Management on Nov. 5 said it was talking with Volkswagen’s 200 largest investors about filing a lawsuit in Germany as soon as February, claiming negligence and breach of securities law.
On Wednesday, Volkswagen of America said that 120,000 owners of diesel cars that have violated US emission standards are to receive US$500 gift cards and US$500 toward vehicle repairs.
Last week, Volkswagen said it was offering a US$500 prepaid Visa gift card, a separate card good for US$500 toward services at a VW dealerships and free 24-hour roadside assistance for three years. In total, that could mean at least US$120 million in benefits to the participating owners.
VW spokeswoman Jeannine Ginivan said 120,000 owners have signed up to receive the gift cards — or about one quarter of the 482,000 vehicle owners covered by the emissions scandal.
VW Group of America president and chief executive officer Michael Horn announced the news at the Los Angeles Auto Show and made his first significant public remarks since he testified before the US Congress on the emissions scandal on Oct. 8.
VW has set aside 6.5 billion euros (US$6.9 billion) to cover costs after it admitted to installing “defeat devices” in 11 million vehicles worldwide with diesel engines built since 2008. The US Environmental Protection Agency has said VW could face up to US$18 billion in maximum fines.
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