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Volkswagen will recommend to its shareholders that they accept a settlement of approximately 10 million euros from former boss Martin Winterkorn, according to people familiar with the matter.
The German vehicle manufacturer announced in March that it did look for damages of Winterkorn, who was at the helm of the group before the 2015 diesel emissions scandal.
The case, in which 11 million vehicles were found to be equipped with software that simulated emissions testing, has cost VW more than 32 billion euros in fines and legal fees so far.
Volkswagen’s decision to sue Winterkorn, who resigned as chief executive shortly after the scandal came to light, it came after a comprehensive report on Dieselgate by law firm Gleiss Lutz was handed out this year.
The report, commissioned by VW’s supervisory board, concluded that “there had been breaches of duty due to negligence” in the company’s top positions.
The world’s second-largest vehicle manufacturer by volume later accused Winterkorn of being aware of the existence of illegal software as of July 27, 2015, but did not “clarify the circumstances” of its use. .
In addition, VW said the ex-chief “did not ensure that the questions posed by the US authorities in this context were answered truthfully, completely and without delay.”
VW’s supervisory board also concluded that Rupert Stadler, Audi’s former boss, breached his care obligations, as did four other executives. Stadler denies the fouls.
Winterkorn has dismissed allegations of wrongdoing. Lawyers acting on his behalf said in March that, in the face of Dieselgate, “he did everything necessary and did not omit anything he would have … to avoid or minimize the damage caused.”
Over the weekend, a meeting of VW’s supervisory board discussed the agreements in agreement with all defendants in March and the proposals will be presented to shareholders next month at the company’s annual general meeting.
Business Insider reported for the first time the figure of 10 million euros for the settlement with Winterkorn. VW confirmed the decisions of the supervisory board, but declined to comment on the exact figures of any agreement.
Winterkorn faces separate fraud charges and is due to be tried in Germany this September. He has also been charged in the United States, but is unlikely to be tried there, as Germany does not extradite its citizens. He denies the charges.
Stadler is currently being tried in Munich, in a case that will remain for several months.
At its meeting, VW’s board of directors also voted to recommend an extension of Hans Dieter Pötsch’s term, who took over as chairman of the company shortly after the 2015 scandal.
Last year, VW agreed to pay a fine of 9 million euros to close a case in which Pötsch and current CEO Herbert Diess, who joined VW in July 2015, were themselves accused of market manipulation in the run-up to the Dieselgate scandal.
German prosecutors had accused the duo of allegedly withholding information from shareholders about the existence of cheating devices, “illegally influencing the price of the company’s shares.”
Shares of VW fell more than 40 percent after the scandal came out, erasing billions of euros from its market value.
The company said the allegations against Pötsch and Diess were unfounded.
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