Investors seeking billions from Volkswagen in lawsuit

FRANKFURT, Germany (WLNS)  –  Institutional investors are suing the German automaker Volkswagen over a diesel emissions scandal.

The automaker is accused cheating on diesel emission testing after years of promoting clean diesel, according to the car blog caranddriver.

These cars have software with two modes, one for testing and another “driving” mode.

According the author Clifford Atiyeh, “In the test mode, the cars are fully compliant with all federal emissions levels. But when driving normally, the computer switches to a separate mode”.

This separate mode improves the vehicles power and gas mileage, but the cars no longer meet the emissions regulation.

Investors from 14 different countries, including the government pension fund CalPERS, are saying Volkswagen did not inform investors about the troubles with diesel cars in a timely way.

The plaintiffs are suing the automaker in a German court and are seeking 3.25 billion euros, roughly $2.62 billion US.

In addition to United States and Germany, plaintiffs are also from Australia, Canada, the Netherlands and the U.K.

However, according to Atiyeh, the cars only exceed federal limits in the United States, and most do pass state and safety regulations. Some states will prevent owners from renewing their registration if their cars don’t meet state regulations.

Cars that are affected by this include Beetle, Audi A3, Audi Q7, Golf, Passot, Audi Q5 and Audi A8, A8L.

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