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BSM Prevails in Bosch Attempt to Rid Themselves of VW Dealer Class Action

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BSM Prevails in Bosch Attempt to Rid Themselves of VW Dealer Class Action

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Along with co-counsel, Hagens Berman, et al., BSM partner Richard Sox represents Volkswagen Dealers in their class action claims against Bosch GmbH and Bosch LLC.  The Bosch entities supplied the device used in the Volkswagen TDI vehicles to defeat emissions testing in the United States.  The class action complaint seeks damages against Bosch under fraud and RICO claims which include payment of treble damages and attorney’s fees for Bosch’s work alongside VW in creating the emissions defeat device and in actively covering up the use of the device when regulatory authorities began investigating.  

Bosch sought to dismiss the VW Dealers’ lawsuit based upon various technical arguments related to the Court’s jurisdiction over the Bosch entities and a contention that Bosch’s actions didn’t “directly” damage dealers.  The Court rejected all of Bosch’s arguments and found that if Bosch indeed conspired to create, utilize and cover up the use of the defeat device that it would be responsible for the ultimate losses suffered by dealers in the form of lost revenues and a loss of franchise value.  The next step in the case is to pursue the discovery of documents and witness testimony which will support the dealers’ legal claims.

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