German Court Acquits VW Managers In Overpayment Case: Report

A German court on Tuesday acquitted four former and current Volkswagen managers who had been accused of overpaying workers' representatives by around five million euros ($5.9 million). Judges in Brunswick, near the car giant's Wolfsburg headquarters, did not find that the accused deliberately acted "contrary to duty and to the detriment of the company", a court spokesman said.

Two former board members as well as a former manager and a current one were charged in November 2019 with breach of trust in the case.

Prosecutors alleged that between 2011 and 2016 the four had awarded "excessive" salaries and bonuses to five members of Volkswagen's powerful works' council, which represents employees at the company.

According to prosecutors, the accused did not use the correct calculations and cost VW 5.1 million euros in overpayments.

According to prosecutors, the accused did not use the correct calculations and cost VW 5.1 million euros in overpayments.

Judges however disagreed, with the court spokesman saying the court heard that the suspects had sought "external and internal guidance" before deciding the pay packages.

Among those allegedly overpaid was the council's former chairman Bernd Osterloh, often described as one of the most powerful people in the company before his departure last April.

VW announced in 2017 that it would change its payment structure and place a cap on remuneration for executives.

The overpayment case was not related to Volkswagen "dieselgate" emissions cheating scandal, which is still causing the firm legal headaches more than six years and 30 billion euros in damages, refunds and court fees later.