Litigation Update: On August 10, 2016, the District Court of Braunschweig publicly disclosed that it has issued an order of reference. All pending claims (or new claims that will be filed) shall be suspended until the Court of Appeal renders a final judgement on the declaratory objectives of the model case proceedings. To finally initiate the model case proceedings, the Court of Appeal has to designate a lead plaintiff which, together with the name of the defendant and the file number, has to be publicly disclosed. On March 8, 2017, the 3rd Civil Division of the Higher Regional Court (OLG) Braunschweig, in Germany, appointed Deka Investment GmbH the model case lead plaintiff. That lawsuit is funded and administrated by International Securities Associations and Foundations Management Company for Damaged VW Investors, LLC (ISAF VW),and is being prosecuted by TILP Litigation Rechtsanwaltsgesellschaft mbH (TISAB), the leading German law firm representing the model case lead plaintiff and hundreds of institutional investors.
Current Deadline: May 12, 2017: Eligible damaged Volkswagen and Porsche investors who did not join the litigation under the KapMuG Proceedings in September 2016 or before now have the opportunity to register a claim via ISAF in connection with those same proceedings originated in the Braunschweig District Court. Any additional claimants to these proceedings has an opportunity to register eligible claims by May 24, 2017 (with a transaction data and documentation deadline of May 12, 2017).
Background: It is critical for investors that purchased shares of Volkswagen AG (“VW”) securities listed on the Deutsche Börse Xetra (“DB Xetra”) exchange in Germany to understand how to access potential damages awards that may result from litigation or settlement with VW, in connection with the Volkswagen diesel engine emissions “cheat devices” scandal. The US class action litigation against VW only covers American Depository Shares (“ADS”) trading on the New York Stock Exchange (“NYSE”). The vast majority of losses for many investors were suffered in the VW shares trading on the DB Xetra exchange in Frankfurt. Therefore, in order to be eligible to participate in any future settlements or damages awards for such losses, investors have to proactively opt-in to organized collective group litigations (coalitions), in Europe, unless of course they decide to initiate litigation on their own.
Battea has studied the available litigation options and continues to stay abreast of developments on behalf of our clients. In addition to our regular process of data handling, loss calculations, class action claims filing and settlement recovery processing from inception through any ultimate settlement recovery, we are available to review, and provide input and assistance to clients to articulate available options.
We have published “Volkswagen Independent Securities Litigation Overview”, a discussion document published by Battea Global Litigation Research, LLC, which explains two types of claims – the Inflation Claims and Rescission Claims – and reviews a number of factors that are relevant when analyzing possible loss recovery options, including jurisdiction, Statutes of Limitation, anonymity, adverse or counterparty risk and other opt-in coalition issues. For parties interested in this report, please fill out the form to the right.