BRAUNSCHWEIG (dpa-AFX) - More than a decade after the Volkswagen diesel scandal first broke, the legal fallout is far from over. Today at 10:00 AM, the Regional Court of Braunschweig begins the third major fraud trial involving five defendants in connection with the manipulation of VW vehicles. What exactly is being litigated? Will this be another protracted affair? And what significance does it still hold today?
Third trial with five defendants
For the third time, a criminal chamber in Braunschweig is hearing a case related to the VW diesel scandal involving multiple defendants. According to the court, the five individuals include former employees of Volkswagen and a supplier. They are charged, among other things, with aiding and abetting commercial fraud and face potential prison sentences of several years.
As in the two previous trials, the case centers on the so-called "defeat device" software, which allowed millions of Volkswagen Group vehicles to show better emissions values on test benches than in real-world driving conditions. This allegedly resulted in billions of euros in damages for buyers. (Case Ref.: 14 KLs 411 Js 13746/21 (33/21))
The defendants are alleged to have co-developed or otherwise supported the development of the software at various periods between November 2006 and September 2015. They are accused of seeking to maximize corporate profits in order to benefit personally through salary and bonus payments. The presumption of innocence applies.
Convicted parties see themselves as scapegoats - Winterkorn proceedings pending
In May 2025, after several years of litigation, the first fraud trial in Braunschweig concluded with a verdict. Two of the four defendants received prison sentences, while the other two were given suspended sentences. However, the convicted parties view themselves as scapegoats and have filed appeals. A decision on these appeals is not yet in sight, meaning it could be a long time before any potential prison terms are served.
Former VW CEO Martin Winterkorn was originally a defendant in this first trial. However, his case was severed for health reasons and has since been provisionally stayed due to his unfitness to stand trial. In court, Winterkorn had rejected any criminal responsibility.
Since November 2025, a second fraud trial has been underway in Braunschweig against another five defendants, some of whom are former executives of the automaker. The four men and one woman are charged with fraud, tax evasion, and illegal advertising, among other offenses. Countless hearings are scheduled for this proceeding until at least the end of 2026.
Former Audi CEO Stadler convicted
The first German criminal verdict in the diesel scandal was handed down in Munich against former Audi CEO Rupert Stadler and two co-defendants. Stadler was sentenced to a suspended prison term of one year and nine months and ordered to pay 1.1 million euros. This decision is now legally binding.
In the United States, where the scandal was made public in 2015 via a "Notice of Violation" from the Environmental Protection Agency (EPA), VW paid more than 20 billion dollars in fines and compensation. Long prison sentences were imposed on former VW employees there several years ago.
Industry expert sees complex question of guilt
According to Helena Wisbert, Professor of Automotive Economics at the Ostfalia University of Applied Sciences in Wolfsburg, the years of legal proceedings demonstrate the complexity of the question of guilt. She expects that both the criminal trials and the investor proceedings for billions in damages will drag on for a long time, Wisbert told the Deutsche Presse-Agentur.
While Volkswagen maintains a stance of non-involvement regarding the criminal trials, the investor lawsuit mentioned by Wisbert remains highly relevant for the group. In the proceedings against the Volkswagen Group and the holding company Porsche SE, investors have been litigating since 2018 for compensation for share price losses suffered in the wake of the "Dieselgate" affair.
Investor lawsuit with billions at stake
For this model case, approximately 2,000 proceedings involving around 3,400 plaintiffs and a total value in dispute of roughly 4.3 billion euros have been stayed, as summarized by a spokesperson for the Higher Regional Court (OLG). In this proceeding alone, some 4,200 pages of transcripts have already been produced. The next hearing is scheduled for May 12.
Industry expert Wisbert points to the greater significance of this case because it involves potential payments and settlements for which financial provisions weigh on the balance sheet. "The ongoing court dates show, on a broader level, that the diesel scandal is a long-term legacy issue for the group and thus a relevant reputational factor," Wisbert said.
Suppliers like Continental also affected
An example of how one of Germany's largest economic scandals continues to have a lasting impact beyond VW is a planned trial against four former Continental executives in Hanover. The defendants there are accused of aiding and abetting approximately three million cases of fraud through indirect perpetration, according to the court in Hanover.
This secondary trial in the Lower Saxony state capital is unlikely to proceed any faster. "The criminal chamber will have to gather and evaluate all relevant evidence itself," a court spokesperson explained. The judges there must also independently clarify the primary acts - namely the fraud allegedly committed by VW personnel./bch/DP/zb
