German court opens way for diesel case against Daimler

AFP  |  Frankfurt 

A said Friday it had opened the way for shareholders to join a collective legal action against parent for diesel cheating that mirrors one already brought against

Multiple shareholders in the luxury carmaker argue that their investment was harmed by the "dieselgate" scandal and that they deserve compensation as a result.

Now a tribunal has called for a so-called "model case" that would test questions common to the claims, in the German legal system's closest analogue to a class-action lawsuit.

In a statement, plaintiffs' said that should have "informed financial markets about the risks arising from the use of in its diesel cars" as early as 2012.

A told AFP: "We believe this case is baseless and we will contest it with all the legal means at our disposal".

The Stuttgart-based manufacturer has consistently disputed claims that it manipulated its motors to appear less polluting in the lab than in real driving conditions.

admitted in 2015 to such practices affecting 11 million cars worldwide, with the subsequent "dieselgate" scandal costing it tens of billions in fines, compensation and buybacks.

The German ministry in June ordered Daimler to recall 774,000 found to contain software capable of deceiving emissions tests.

Most were Vito vans, GLC-class SUVs and sedans. Since 2015, several German prosecutors' offices have opened cases against and its subsidiaries and Porsche, along with Daimler, and on suspicion of fraud, stock market manipulation or

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, January 04 2019. 19:15 IST