Norway’s $850 billion oil fund is planning to sue Volkswagen AG over the car maker’s emission-cheating scandal that triggered a recall of 11 million cars last year. According to the Financial Times, the Norwegian fund — the world’s largest sovereign wealth fund — will seek to join a class action lawsuit in Germany against VW, expected to be filed in coming weeks. Petter Johnsen, chief investment officer for equity strategies at Norges Bank Investment Management, the manager of the oil fund, told the FT that “as an investor it is our responsibility to safeguard the fund’s holding in Volkswagen.” The NBIM is estimated to have suffered big losses on its Volkswagen stake after the car maker last year admitted it had cheated on its emissions test. The scandal led to the biggest earnings loss in Volkswagen history last year, with the company setting aside $18.2 billion to cover the costs. “Something this big doesn’t just go away quickly and the costs are spiralling,” said Joe Rundle, head of trading at ETX Capital, in a note. “And if the Norwegian fund is suing VW because the company’s actions led to losses on its investment, then it could open to door for other shareholders to seek redress,” he added.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News
