Overview

• The Federal Court of Justice voided Volkswagen’s 2021 AGM consent to a D&O coverage settlement, ruling the approval violated disclosure requirements.
• The court found the agenda failed to reveal that the insurer deal would also cut off claims against more than 100 additional current and former managers.
• Questions about whether shareholders were adequately informed on Martin Winterkorn’s and Rupert Stadler’s assets and financial capacity were remanded to the OLG Celle.
• Volkswagen said it is negotiating next steps with all parties and has secured an agreement with insurers not to pursue potential clawbacks for now.
• The disputed package totaled about €288 million, including roughly €270 million from insurers plus €11.2 million from Winterkorn and €4.1 million from Stadler, and the ruling could increase the former executives’ personal exposure.