Volkswagen settlement with former Audi CEO Rupert Stadler invalidated by court

The Higher Regional Court of Celle has invalidated the approval by Volkswagen shareholders regarding a liability settlement with former Audi CEO Rupert Stadler. This ruling follows a lawsuit brought by investor protection associations related to the diesel emissions scandal.

In 2021, the Volkswagen Supervisory Board reached a settlement totaling approximately 288 million euros with the lawyers and insurers of former top managers. Under this agreement, former CEO Martin Winterkorn was to pay 11.2 million euros and Rupert Stadler was to pay 4.1 million euros in exchange for being released from further claims. Although these agreements were approved by a large majority at the Volkswagen Annual General Meeting, the court ruled the approval invalid.

The court concluded that the information provided to shareholders regarding the financial status and potential liability extent of the managers was insufficient. While the ruling is not yet final, the court did not allow for a standard appeal, though a complaint against the non-admission of appeal to the Federal Court of Justice remains an option. Volkswagen has stated it disagrees with the court's view and intends to exhaust all legal remedies. A separate proceeding regarding the settlement with Martin Winterkorn has been severed from this case.