The German Federal Court of Justice (BGH) has annulled a resolution of the VW Group General Assembly dating from 2021 stipulating that former CEO Martin Winterkorn had to pay €11.2 million to the company for its responsibility in the gigantic scandal of fraud diesel software commonly known as ‘Dieselgate’.

The agreement also foresaw a €4.1 million payment to the company from former Audi CEO Rupert Stadler, as well as a compensation of €270 million paid by the insurance companies, which rendered the payments of both ex-CEOs redundant.

Several shareholder associations disagreed with the low compensation offers compared to the immense damage done and took the matter to court. After being rejected in earlier trials, their claim has finally been validated by the highest German jurisdictional court.

Not enough information

The judges found that the information provided to the shareholders regarding the patrimonial situation of the former top managers was insufficient, making a clear decision inoperable. The case is now re-transmitted to the appellate court of Celle (northern Germany) for re-investigation of the agreements.

A spokesman for the VW Group has told AFP that “Volkswagen and the other actors concerned are now discussing the possible consequences of the verdict.” The manufacturer nevertheless considers “that the principal motifs leading to the 2021 agreement are still valid.”

€32 billion, and counting

To date, the Volkswagen Group has already paid more than €32 billion in fines and compensation for the scandal, primarily in the United States.

Martin Winterkorn also faces a trial before a penal court, where he risks a 10-year prison sentence. This trial has already been suspended several times due to the health state of the ex-CEO, which has hindered his appearance before the court.

In contrast, Audi’s former boss, Rupert Stadler, was the first to be convicted in this case. In June 2023, he was convicted to a suspended prison sentence and a fine of €1.1 million. Other managers already followed, but Winterkorn managed to remain free until now.