Volkswagen to be sued by Norway fund over emissions scandal

2016-05-16 04:18:22

Norway's sovereign wealth fund, the world's largest, plans legal action against

Volkswagen over the firm's emissions scandal.

It said it had been advised by lawyers that the company's conduct "gives rise

to legal claims under German law".

Volkswagen admitted last year that it had installed secret software to cheat US

emissions tests.

The move, from one of VW's biggest investors, is the latest in a flood of legal

actions over the scandal.

It faces action from US Department of Justice, the Federal Trade Commission and

its own dealers.

Norges Bank Investment Management is worth $850bn ( 592bn; 751bn) and has

stakes in more than 9,000 companies.

According to the Financial Times, which first reported the story, the lawsuit

is expected in the coming weeks. It will be filed in Germany, joining

class-action cases which are being prepared there.

'Safeguard'

"Norges Bank Investment Management intends to join a legal action against

Volkswagen arising out of [the fact that] the company provided incorrect

emissions data," the statement said.

"As an investor, it is our responsibility to safeguard the fund's holding in

Volkswagen."

Volkswagen has put aside some 16.2bn to pay for the emissions scandal.

Last month the German carmaker reached a deal with US authorities in which it

agreed to offered to buy-back almost half a million vehicles and provide money

for a fund to help develop cleaner car technology.

The Norwegian fund recently announced action to clamp down on excessive

executive pay at the companies it invests in, as well as encouraging oil firms

to report more on the risks of climate change.