Volkswagen AG VWAGY reportedly faces lawsuits in Germany concerning the role of an electric vehicle battery in a 2022 cargo ship fire.
The suits implicate a Porsche electric vehicle battery as the cause of the fire onboard the vessel, which ultimately sank with thousands of vehicles.
Volkswagen AG confronts litigation from Mitsui OSK Lines Ltd. and Allianz SE ALIZF, among others, reported Bloomberg.
The suits, filed in courts in Stuttgart and Braunschweig, are paused for mediation, expected to resume if no settlement is reached.
The Panama-flagged Felicity Ace caught fire in the Atlantic Ocean near the Azores archipelago, leaving the vessel adrift after crew rescue.
With nearly 4,000 vehicles aboard, the incident incurred significant potential losses for Volkswagen.
Plaintiffs allege Volkswagen’s failure to disclose risks associated with transporting vehicles with lithium-ion batteries.
Price Action: VWAGY shares traded lower by 2.11% at $15.05 on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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