By David Sachs


Volkswagen Group is the target of lawsuits related to a cargo ship that sank with thousands of vehicles aboard in 2022.

A spokesman for the German carmaker confirmed Tuesday that it is part of civil lawsuits, filed in a German court, that relates to the sinking of the Felicity Ace. The cargo ship caught fire and sank off the coast of Portugal's Azores islands while carrying about 4,000 cars, including models from Audi, Porsche, and Volkswagen's namesake brand.

The lawsuits allege that a battery from a Porsche caused the fire, Bloomberg reported Tuesday, citing a spokesman from a court in Stuttgart. Ship owner Mitsui OSK Lines and insurer Allianz are among plaintiffs, Bloomberg reported. The case filed in Stuttgart is a year old but has been paused amid settlement discussions for a second lawsuit, Bloomberg reported.

"Volkswagen AG confirms that it has been served with civil lawsuits in Germany in connection with the sinking of the 'Felicity Ace'," a group spokesman said. "As these are ongoing proceedings, we cannot comment on further details at this time."

Mitsui, Allianz, nor the Stuttgart court immediately responded to requests for comment.


Write to David Sachs at david.sachs@wsj.com


(END) Dow Jones Newswires

03-05-24 1004ET