Pursuits

VW Ordered to Face U.S. Investor Suit Over Diesel Cheating

  • Ex-Chairman Winterkorn also loses bid to toss shareholder case
  • Judge says some of alleged fraud might have been in U.S.

A Volkswagen car is tested for compliance with emissions laws in California in 2016.

Photographer: Patrick T. Fallon/Bloomberg
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Volkswagen AG must face claims it misled U.S. investors after installing so-called defeat devices in diesel vehicles used to cheat emissions tests.

A San Francisco federal judge also rejected a request to dismiss shareholder claims against former VW Chairman Martin Winterkorn, who said investors in VW’s American depositary receipts couldn’t prove he knew the extent of the company’s “diesel issue.”