BLM partner Alexander Traill discusses in The Guardian how the new CEO of Volkswagen, Matthias Muller, could be help personably liable for a drop in share prices if he doesn’t act quickly to rectify their current situation.
“Assuming he is appointed, Matthias Müller may be walking into a liability minefield. First of all, Martin Winterkorn may be held personally liable for the failures that occurred when he was in charge. The fact that he openly accepted responsibility for the irregularities found in the engines won’t help his case, and the prospects of class actions by disgruntled shareholders are significant, particularly if the share price of VW is negatively impacted in the longer term. Mr Winterkorn also faces the matter of assisting and potentially being a subject of any regulatory prosecution both in the US and the UK.
The new CEO is now under a huge amount of pressure to rectify the problem. If this is not done quickly enough to avoid a further fall in share price, he could also face the wrath of shareholders as well as becoming embroiled in prolonged regulatory investigations himself. However it is worth remembering that there will be other members of the VW board who may have failed in their responsibilities, so it would not be surprising if we were to see others called out and held accountable for the situation as well”
You can see Alexander’s thoughts, and more on the subject, on The Guardian website.