Independent auditor to investigate VW scandal

A German court has appointed an independent auditor to investigate Volkswagen’s emissions scandal due to pressure from investors seeking billions of dollars in damages. The court said in a legally binding decision on Wednesday that an auditor must be appointed and the decision cannot be appealed by the carmaker. Shortly after “Dieselgate” broke out in September 2015, VW hired U.S. law firm Jones Day and advisory firm Deloitte to investigate the circumstances of its wrongdoing and who was responsible. Although VW promised to improve transparency, they did not publish the findings that were used as the basis for a $4.3 billion settlement with the U.S. Justice Department. "This is an extremely good day for the VW shareholders who have lost a lot of money in the wake of the diesel scandal," DSW Vice President Klaus Nieding said. "At last, light will be shed on the darkness that has shielded VW for so long." The auditor will examine when VW's top management board first learned of the test cheating and whether it disclosed the possible financial damage to investors promptly. German securities law also compels firms to publish any sensitive news in a timely fashion. However, VW has said it believes its management complied with obligations under German disclosure rules.