Bavaria is the first federal state in Volkswagen’s home country to take action against the company, as it seeks to recoup funds lost from the Bavarian pension fund. Bavaria owned around 58,000 preference shares in VW, making it the company’s second-biggest shareholder, when the emissions scandal broke last year. Bavaria therefore lost out by up to 700,000 Euros (£587,000) when the share prices fell in the aftermath.
“We want this money back,” Bavarian finance minister Markus Söder told German news agency Deutsche Presse-Agentur. He said Bavaria’s pension fund would file the suit in September at a regional court in Lower Saxony, close to VW’s Wolfsburg headquarters.
Lower Saxony officials have expressed doubt that Bavaria’s legal action could succeed.
Its finance minister, Peter-Jürgen Schneider, said in a statement that it was unclear whether Bavaria would seek damages for losses incurred because of the fall in VW’s share price, or if it will claim that VW’s violation of disclosure rules caused the financial impact.