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Volkswagen Retains Kirkland & Ellis
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In light of the recent scandal surrounding Volkswagen over the use of software to evade emissions tests, the company has hired Kirkland & Ellis

Summary:  Volkswagen has hired Kirkland & Ellis to handle its emissions scandal.

According to AutoNews.com, Volkswagen AG has hired Kirkland & Ellis admist revelations that the car manufacturer manipulated its pollution controls.

  
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The New York Times is reporting that the CEO of Volkswagen, Martin Winterkorn, has resigned over the “grave scandal.” This news comes less than a week after Volkswagen admitted some diesel vehicles in the United States contain software to help them cheat emissions tests. When the software detects that an emissions test is underway, it switches modes so emission read-outs are under the legal limit.

Last month, Volkswagen was forced to sell its Suzuki shares.

Kirkland & Ellis defended BP during the criminal investigation of the Deepwater Horizon oil spill of 2010. The offshore explosion claimed 11 lives and the resulting spill was the worst in United States history. Presumably Volkswagen hopes K&E will be be able to apply its experience from that matter to the avalanche of claims headed Volkswagen’s way.

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Kirkland & Ellis offers its associates $100,000 bonuses.

Volkswagen estimates that up to 11 million cars may be affected by the defunct emissions controls. The company is setting aside at least 6.5 billion euros to handle the situation. According to Reuters, the company will need to show that there was a legitimate reason for installing the software that caused the false vehicle emissions tests. Otherwise it may face criminal charges.



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Last year, a federal judge ordered attorneys to return one of the BP spill awards.

Mark Filip led the BP case for Kirkland & Ellis. In November, 2012, BP took a deal, pleading guilty to 14 criminal charges, including 11 for felony manslaughter. It also agreed to pay $4 billion to resolve the criminal case. In July, BP also agreed to pay $18.7 billion to settle all of the existing state and federal civil claims.

Filip

Filip

Source: AutoNews.com

Other sources: CNN Money

Photo credit: photogallery.classiccars.com, suggestkeyword.com (Filip)



 

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