S&C Obtains Dismissal for VW in Salesperson Suit

October 2, 2019

Volkswagen and affiliates prevailed in their motion to dismiss a purported class action brought by current or former Volkswagen salespersons who were or are employed by VW's independent franchise dealers. U.S. District Judge Charles Breyer of the Northern District of California rejected the plaintiffs' claims, including that VW had defrauded them and caused them to sell fewer cars as a result of its disclosures in 2015 about emissions in its diesel vehicles.

The S&C team for Volkswagen and Audi includes Robert Giuffra, Sharon Nelles, William Monahan and Andrew Finn.

Judge Breyer also rejected claims that as a result of its emissions disclosures, VW negligently interfered with the plaintiffs' prospective economic advantage, breached terms of a sales incentive program and violated RICO, finding that the plaintiffs had failed to allege sufficient facts to support these claims.