Allianz to sue Volkswagen over Dieselgate share drop: source

[FRANKFURT] German insurer Allianz plans to sue Volkswagen in the coming weeks to seek compensation for a severe drop in the car maker's share price stemming from the "Dieselgate" emissions scandal, a source familiar with the situation said on Tuesday.

The planned lawsuit by Allianz Global Investors (AGI) represents the first such action by a major German institution against the national carmaking icon, which is still reeling from the biggest corporate scandal in its history. "It will happen within this month," the person said.

AGI said in a statement on Tuesday it had not filed an action against VW to date but was weighing a suit.

REUTERS