Recent news of the Volkswagen emissions scandal has many people wondering what is in store for the auto giant. For the American public, finding out millions of cars on the road are fraudulently passing emissions testing is disappointing. However, for VW owners, realizing you've been lied to this whole time is downright upsetting. And with thousands of upset individuals joining in class actions lawsuits against VW, knowing what's in store for the automaker may not be a mystery for long.
The number of class action lawsuits brought on by VW owners against the German auto company continues to grow. With recent numbers being somewhere in the thirties and with no sign of slowing, damage to the VW reputation may be the least of their concerns.
Over 500,000 of VWs most popular vehicles are now recalled in the U.S. While not all VW owners have filed a lawsuit, the class action suits represent the group as a whole. This means that not only will the individuals that filed the lawsuit stand to benefit from it, but so will every other VW owner that has been impacted by this situation. These types of lawsuits are considered antitrust lawsuits and can have devastating impacts on companies.
CNN Money reports that the automaker has set aside some 7 billion to offset the cost of the fallout from the scandal. However, worst case scenarios have VW on the hook for 10 times that. While it is unclear if this amount includes what could be awarded to the class action lawsuits, it's hard to believe it could be any worse.
Although the carmaker has admitted to cheating on emissions tests, it is likely they won't go down without a fight. Just as the American public has found their legal voice through class action lawsuits, VW will probably come to the table with a team of business litigation attorneys. If you are a business owner and are faced with a possible legal battle, speaking to a trusted and experienced business litigation attorney will help.
Source: NPR, "34 And Maybe More: Class Action Lawsuits Pile Up Against VW," Rachel Martin, Sept. 27, 2015