Volkswagen AG lost an appeals case in Germany’s highest civil court over the shareholders’ approval of a settlement with former Chief Executive Officer Martin Winterkorn over his role in the diesel-emissions scandal that cost the company more than €30 billion ($35 billion).
The approval of the 2021 pact may be void because VW hadn’t allowed shareholders to ask questions about the assets of Winterkorn and ex-board member Rupert Stadler, the Federal Court of Justice in Karlsruhe ruled on Tuesday, sending that part of the case back to a lower court. Under the agreement, Winterkorn had to pay €11.2 million and Stadler agreed to pay €4.1 million.
The judges struck down the approval of the part of the deal that made the Directors’ and Officers’ liability insurance cover €270 million. VW failed to tell shareholders beforehand that the settlement freed most other executives from liability over the affair, the court said. The settlement hinged on the shareholder approval.
Volkswagen and the other parties to the settlement are in talks about the possible consequences of the judgment, the automaker said in an emailed statement. The reasons for striking the deal in 2021 still apply and the company wants to reach the same outcome again, it said.
The case is BGH, II ZR 154/23.
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