securities fraud: However, in a 41-page ruling, US District Judge Charles Breyer denied the claims, according to Deutsche Welle. The judge further rejected a request by VW brand chief Herbert Diess to have proposed securities fraud lawsuits also tossed out. Volkswagen had requested to have an investor lawsuit in California dismissed, arguing that German courts were the proper place to handle cases relating to the Dieselgate emissions scandal. In his ruling, Breyer said that because the United States has an interest in protecting domestic investors against securities fraud, the lawsuits should go ahead in an American court. The lawsuits assert that VW's market capitalization fell 63 billion 60 billion euros after reports broke in September 2015 that the car giant had cheated on its emissions exhaust tests. Investors suing VW are mainly US municipal pension funds that had invested in the carmaker through American Depositary Receipts, a form of equity ownership in non-US companies that represents the company's foreign shares.
(news.financializer.com). As
reported in the news.
Tagged under securities fraud, american court topics.