Volkswagen Settles With Former Executives

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Volkswagen has reached a settlement with former company executives over the diesel scandal.


Together, the directors, including ex-CEO Martin Winterkorn, coughed 288 million euros to buy off claims related to the scandal.

The agreement mainly consists of a payment of 270 million euros from the directors’ liability insurance. Former Audi boss Rupert Stadler will also have to contribute. The deal still needs to be approved at the annual shareholders’ meeting on July 22.

At the end of March, Volkswagen said it would demand compensation from Winterkorn and Stadler for violating the duty of care. As part of the deal, Winterkorn and Stadler will pay 11.2 million and 4.1 million euros correspondingly.

Previous Audi board member Stefan Knirsch agreed to a settlement of 1 million euros. Former Porsche board member Wolfgang Hatz contributes 1.5 million euros.

The settlement comes as prosecutors in Berlin reported that they had filed separate charges against Winterkorn. The ex-top man is said to have given false testimony before the German parliament when he said he was not aware of the diesel scandal before the problems came to light.

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