Blackrock join in on Volkwsagen investors' emissions scandal lawsuit

Asset management firm Blackrock has joined a group of Volkswagen shareholders who are bringing a lawsuit against the German car manufacturer over the practices it conducted related to its emissions scandal.

The firm joins the likes of State Street and Nodea Asset Management in the demand for €2bn in compensation from the German state of Lower Saxony.

Volkswagen are accused of failing to inform the investors of the nature of the scandal when it first came to their knowledge.

Although the carmaker formally disclosed that it had fitted emission test cheating software in 11m vehicles in September 2015, the lawsuit will argue that it was questioned about the software the year before.

The case is represented by law firm Quinn Emanuel and is expected to be filed on Friday morning in the German regional court.

A spokesperson confirmed to the Financial Times that Blackrock would indeed be participating in the claim.

"On behalf of their investors, a number of Blackrock-managed collective investment schemes are pursuing, alongside other institutional investors, legal action against Volkswagen AG in connection with Volkswagen's failure to disclose to investors its use of 'defeat devices' that manipulated emission tests."