Norway sovereign wealth fund to sue Volkswagen
Norway's sovereign wealth fund, the world's largest, is to sue German carmaker Volkswagen over an emissions-cheating scandal that caused it huge losses, the Financial Times reported Sunday.
"We have been advised by our lawyers that the company's conduct gives rise to legal claims under German law. As an investor it is our responsibility to safeguard the fund's holding in Volkswagen," Peter Johnsen, the chief executive of the fund's manager Norges Bank Investment Management, told the newspaper.
The German automobile giant is already facing a slew of lawsuits from shareholders seeking damages after deep falls in its share price, as well as from angry car owners.
Volkswagen's admission that illegal software was installed on 11 million diesel engines to cheat emissions tests sparked a global scandal and forced it to recall vehicles from around the world.
The carmaker has set aside 16.2 billion euros ($19 billion) in provisions to cover potential fines, lawsuits and recall costs, resulting in its first annual loss since 1993.
Volkswagen did not immediately respond to a request for comment. A spokesperson for Norges Bank Investment Management could not be reached for comment.