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German court gives green light for legal action against VW

A German court has cleared the way for 170 investors to pursue Volkswagen with legal action over the emissions scandal.

According to the Financial Times, a regional court near VW’s headquarters in Wolfsburg said the companies are using a legal procedure similar to a class-action lawsuit seen in the US to pursue VW for almost €4 billion (£3.4bn) “for losses suffered” relating to the emissions scandal.

The court will appoint a single plaintiff to represent the 170 investors before the end of 2016.

VW Group has already said it is willing to pay some of the costs for recent UK retesting of vehicles as a result of the emissions scandal.

In the US,  Volkswagen Group has made goodwill payments to customers of up to $1,000 (£680) each, but has not been legally ordered to do so.

The package of benefits for US customers even has its own dedicated website. It includes a prepaid loyalty card, a prepaid card valid for use against purchases in the dealership such as servicing and roadside assistance.

Volkswagen Group UK has said that a loss for vehicles owners has to be proved in order for it to offer some sort of compensation.

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