Ireland could spell trouble for Volkswagen

An American law firm has joined an Irish lawsuit over #Dieselgate that could lead to enormous damages claims throughout Europe.

While Volkswagen settled its emissions-cheating scandal in the United States with a US$15 billion payment, it has refused to hand over cash or buy back the cars of European owners, despite initial promises from its CEO, Matthias Müller, that they would also be compensated.

Yet, a relatively simple lawsuit by Irish Seat Leon owner Eithne Higgins has Volkswagen scurrying, because Ireland's courts are the only ones in Europe with the power to compel Volkswagen to publicly release every document relating to Dieselgate.

Legal firm Hausfeld already represents a group of Volkswagen owners in the U.S. and has joined with Higgins' local lawyer, Evan O'Dwyer, German newspaper Handelsblatt explained.

"The Irish case will create a breakthrough for the planned lawsuits in Europe," Hausfeld attorney, Christopher Rother, told Handelsblatt.

Dieselgate is the coverall tag given the Volkswagen's multi-billion dollar crisis, which deliberately cheated on the NOx emissions of almost 11 million four-cylinder diesel cars between 2008 and 2015.

Higgins claims her 2010 model car has lost a lot of its resale value due to the scandal, with other Volkswagen Group brands, Audi, Volkswagen and Skoda also involved.

Rother said Irish law could force Volkswagen to make public all relevant internal emails, meeting notes and even presentations related to the development and decision-making behind Dieselgate.

The fresh legal hurdle comes as the Braunschweig public prosecutor revealed it was expanding its own investigation into Dieselgate from 17 to 21 managers, and both numbers are considerably greater than the "small handful" of people Volkswagen pointed the finger at.

"I can confirm that prosecutors are now investigating 21 people on suspicion of fraud in relation to the diesel emissions manipulation," prosecutor Klaus Ziehe told Handelsblatt.

Still, though, it looks like the board of management of the company will emerge unscathed, with the prosecutor's office admitting it is focused on relatively junior managers.