Volkswagen AG (ADR) (OTCMKTS:VLKAY) has finished the last trading session with a loss of 2.88%, which can be taken as a very normal occurrence for a stock so firmly in the grips of a huge bear market. The volume of the day at 886,000 was less than the daily average of 1 million but in a bear market, the declines don’t need volumes as price can drop sharply simply in the absence of buyers. The stock is in the midst of a base building process and that can take a few more months.
Nothing seems to be going right for Volkswagen AG (ADR)(OTCMKTS:VLKAY) at this moment. According to reports, law officers of Howard G. Smith have reminded all the investors of the company about the lead plaintiff motion deadline of November 24, 2015.
The plaintiff deadline is to file a class action on behalf of all the shareholders who bought Volkswagen securities b/w November 19, 2010, and September 21, 2015. All those investors who suffered unexpected losses after buying company’s shares between these two dates can contact the law officers at Howard G. Smith and take a legal action against the company.
Is Volkswagen Guilty?
Hundreds of investors who bought company’s shares based on the historical data between the dates mentioned above suffered losses, which shattered their confidence in the company. At the same time, it also prompted the legal authorities to enquire into this matter. When enquired deeply, it was found that Volkswagen had been cheating U.S. air pollution tests for years. The company accepted its fault, which exposed it to possible criminal prosecution and billions in fines.
Volkswagen reportedly sold Audi and diesel Volkswagen cars having software that would control full pollution control only during official emission tests. However, they’re found polluting the environment 10 to 40 times more than the legally prescribed limit. If Volkswagen doesn’t defend itself against the legal authorities and found guilty in this case, it can be fined around $37,500 per vehicle for total 482,000 vehicles, which makes the total fine amount $18 billion.
All the complaints filed against Volkswagen allege it to misled its customers intentionally about its compliance with country’s emission limit standards. As soon as this report made it to the headlines of all the major publications, Volkswagen shares fell badly, leaving investors with no choice but to suffer unpredicted losses.
If any investor has bought company’s share between the dates mentioned above, he can move to the courtroom before November 24, 2015, and ask the authorities to appoint a lead plaintiff to represent his case.