FRANKFURT -- The German state of Lower Saxony, Volkswagen's second-largest shareholder, has no plans to sue the automaker for damages caused by its emissions-test cheating scandal, the state's prime minister, Stephan Weil, told a German weekly paper.
Earlier this week, the state of Bavaria said it would sue VW, the first regional government in VW's home country to take legal action against the company. The states of Hesse and Baden Wuerttemberg said they were considering joining Bavaria.
VW's home state of Lower Saxony, which has a veto power on the automaker's supervisory board and holds a fifth of VW's voting rights, currently sees no legal basis to claim damages, Weil told Welt am Sonntag.
"As a result there are no plans for a lawsuit," he was quoted as saying.
Shares in VW plunged in the wake of the revelation of the cheating by U.S. regulators last September, hitting the state coffers and pension funds of German states. Bavaria's state pension fund for civil servants lost as much as 700,000 euros ($780,000).