Welcome to the official website of the Volkswagen Investor Settlement Foundation
Dissolvement of the Foundation
As per 27 May 2020 the Board and the Supervisory Board have decided to dissolve the Volkswagen Investor Settlement Foundation (“the Foundation”).
The Foundation has been set up as a “settlement foundation” that aims to secure compensation for investors through a potential future settlement with Volkswagen through the Dutch Collective Settlement Act in the Amsterdam Court of Appeals. The Dutch Collective Settlement Act provides an efficient mechanism to settle mass claims, including securities claims. A defendant (here Volkswagen) can use this act to settle mass claims and pay fair compensation to investors who were harmed while obtaining a broadly enforceable release. However, the Dutch Act does not have a mechanism to compel a defendant to use this system – it depends on a defendant’s voluntary decision to reach a global settlement of claims against it. The Foundation’s strategy has therefore been to attempt to engage with Volkswagen while incentivizing the company to compensate Volkswagen investors for losses suffered as a result of the diesel emission issue.
We believe that our initial strategy was sound. We understood that it depended on Volkswagen’s interest and possible willingness to engage in a global settlement. The Dutch Collective Settlement Act has no mechanism to force Volkswagen to settle with investors. The Foundation has abstained from pursuing claims against Volkswagen in the Netherlands or Germany. Thus, our strategy always depended on the creation of outside incentive for Volkswagen to seek global peace through the Foundation. However, the U.S. class action, the litigation in Germany, and public opinion have not brought Volkswagen to the negotiating table. Based on all the above, the Board and the Supervisory Board have decided to dissolve the Foundation. The Foundation has instructed Stibbe to dissolve the Foundation and it will cease to exist within a couple of weeks.