Shareholder representatives continue to argue over Winterkorn settlement

Cologne More than seven years after the diesel scandal became known, there is no end in sight to the legal dispute for Volkswagen. The protective community of investors (SdK) still does not want to accept a comparison that the group has made with former executives. The district court in Hanover recently dismissed the lawsuit.

However, the shareholders’ protectors are not giving up: According to Handelsblatt information, they want to appeal to the Celle Higher Regional Court on Monday.

The subject of the lawsuit is the settlements decided at the Annual General Meeting in July 2021 with some former board members, including former CEO Martin Winterkorn and ex-Audi boss Rupert Stadler. Volkswagen received around 288 million euros from the former top managers and the insurers.

Only compensated a fraction of the damage

Reason were breaches of duty in the diesel scandal. According to an extensive legal investigation, Winterkorn and Stadler were jointly responsible for the fact that the manipulation of diesel engines was not cleared up and stopped.

Winterkorn had to contribute 11.2 million euros as part of the settlement. Stadler, who has been on trial in Munich since autumn 2020, paid 4.1 million euros. The insurers took over most of it. With so-called D&O policies, companies protect their executives against claims for damages.

The comparison was a record deal that had never existed before in the German economy. Nevertheless, compared to the total damage of more than 32 billion euros caused by the diesel scandal, the compensation payments are hardly significant.

The shareholder representatives are convinced, for various reasons, that Volkswagen let the managers off too cheaply. “The basis for the decision was simply insufficient, the comparison was premature,” said Oliver Wilken, lawyer for the SdK.

The question of the criminal liability of some managers is still unresolved. Rupert Stadler is on trial in Munich. Martin Winterkorn has been charged and is still facing a trial. From the point of view of the SdK, VW should have waited for the proceedings. In addition, there is still a special test.

Tailwind for Volkswagen

As a result, SdK believes that the deal violates the company’s interests and is abusive. The shareholders’ association is convinced of this even after the defeat in the first instance. VW, in turn, was confident that the comparison is legally watertight.

The district court in Hanover had sided with the car manufacturer. However, it was no more than a stage win. It may still take a while before a final decision is made. The SdK seems willing to take the dispute to the Federal Court of Justice if necessary. It’s about getting things sorted out in principle.

More: 288 million euros are not enough: VW shareholders want to overturn the comparison with Winterkorn and Co