VW can face dieselgate claims where cars bought

A verdict from the EU's top court raises the possibility that VW could face masses of legal complaints across the bloc.

The Court of Justice announced on Thursday (July 9) that customers should be able to sue the German carmaker in their national courts, if they bought cars with emission cheat devices installed.

The case was brought to the EU court because of a claim being heard in Austria.

It involved a case brought on behalf of over 500 owners of affected vehicles.

The court there had sought to establish if it had jurisdiction on the matter.

Now the EU's top judicial body, the Court of Justice, has ruled that under European law court applicants should, in principle, sue where the defendant is based.

But it added that there was also the possibility of taking action in the place where damage had occurred.

VW admitted in 2015 to using illegal software to cheat U.S. diesel engine tests.

The scandal has cost it more than $30 billion in refits, fines and provisions.

VW said the latest judgment changed little for plaintiffs, defendants and courts in the dieselgate proceedings.

"Outside of Austria, the question of jurisdiction has hardly arisen," it said.

But Austria said the ruling was encouraging for a large number of its affected nationals.

Nearly all U.S. owners of affected cars agreed to take part in a $25 billion settlement in 2016 in the United States.

The carmaker is in talks in Germany to settle a class action lawsuit there.