Volkswagen Sued Over Share Drop Amid Emissions Test Scandal
- Carmaker's ADRs have fallen 29% since defeat device disclosed
- Suit may be first by investors seeking recovery for losses
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Volkswagen AG was accused in a lawsuit of scheming to defraud U.S. investors who paid artificially inflated prices for the company’s foreign shares while it cheated on vehicle emissions tests.
In what may be the first investor suit over Volkswagen’s use of so-called defeat device software to pass smog tests, a Michigan pension fund alleges that holders of the company’s American depositary receipts lost hundreds of millions of dollars. The receipts have fallen 29 percent in the week since the scandal became public.