Norway’s wealth fund to sue Volkswagen in emissions scandal
The sovereign fund of Norway plans to be enjoined in class-action lawsuits against German automaker Volkswagen over its emissions scandal.
“Norges Bank Investment Management intends to join a legal action against Volkswagen arising out of the fact that the company provided incorrect emissions data,” said Marthe Skaar, the Norwegian fund spokesperson.
“We have been advised by our lawyers that the company’s conduct gives rise to legal claims under German law. As an investor, it’s our responsibility to safeguard the funds holding in Volkswagen,” she added.
It is not clear when the legal action will take place, although, according to another source within the fund, it will take place in Germany.
According to the Financial Times on Sunday, the $850 billion fund is expected to join the lawsuits in a matter of weeks.
Last year, Volkswagen admitted to having used sophisticated secret software to provide falsified exhaust emissions test results in its cars.
The Norwegian fund claimed last year that the cheating action by Volkswagen led to a loss of 4.9 billion crowns in its second quarter.
Meanwhile, the automaker made a deal worth almost $10 billion with the US Government to either withdraw or fix approximately half a million of its diesel cars in the US market. The deal also requires Volkswagen to set up environmental funds, as well as funds for compensating customers.
Other companies that have attracted the fund’s wrath are Exxon Mobil and Chevron, which have been asked to be more proactive in reporting on climate change risks.
The Norwegian fund, which is itself built on the wealth of oil and gas, has prevailed upon oil companies worldwide to do more and be more open in reporting on the risks of climate change.
It remains to be seen how soon the fund acts on the expected lawsuit.
Published by Green Jobs Online - 17th May 2016