Ius Omnibus v Volkswagen (Dieselgate)

Ius Omnibus, a consumer protection association, has brought legal proceedings against the Volkswagen Group and its associated brands – Audi, Seat and Skoda – for selling diesel cars fitted with systems that manipulated emissions tests. The claim was filed on 25 July 2025 at the Lisbon District Court. In practice, these vehicles passed official tests, but on the road they emitted pollutants far in excess of legal limits. Consumers bought cars they believed to be more environmentally friendly than they actually were – and paid a price that did not reflect the true value of the vehicle. The association is calling on the companies to compensate all affected consumers, with damages estimated at a minimum of €4,000 per vehicle.

The case became known internationally as ‘Dieselgate’ and involves the installation of illegal devices in diesel vehicles. These devices were programmed to detect when the car was being tested in a laboratory, activating the pollution control systems at that moment. However, under normal driving conditions – that is, on everyday roads – these systems operated differently, allowing the vehicles to emit levels of nitrogen oxide (NOx) far exceeding the limits permitted by law.

Nitrogen oxide is a polluting gas that impairs air quality and has negative effects on public health, contributing to respiratory problems and other illnesses.

The action is directed against several companies within the Volkswagen Group, namely: Volkswagen AG, Volkswagen Finance Luxemburg, Volkswagen Digital Solutions, Audi AG, Seat S.A., Skoda Auto AS, Porsche Holding GMBH and SIVA – Sociedade de Importação de Veículos Automóveis (the importer of these brands in Portugal).

The action aims to protect all persons residing in Portugal who are or have been owners (or users with a right of use) of passenger cars of the Volkswagen, Audi, Seat or Skoda brands, provided that these vehicles meet the following conditions:

  • They are fitted with EA189 or EA288 diesel engines

  • Have been manufactured in accordance with Euro 5 or Euro 6 (up to Euro 6c) emissions standards

  • Were first sold between 1 September 2009 and 30 September 2019

  • Have been registered in Portugal for the first time on or after 1 September 2009

How were consumers harmed?

The companies advertised these vehicles by highlighting their environmental credentials and the effectiveness of their emission control systems, without revealing that they were fitted with defeat devices. Consumers were thus misled: they bought cars they believed to be more environmentally friendly, when in reality they were not.

If consumers had known the truth, they would either not have bought these vehicles, or would only have bought them at a lower price. The loss is estimated to be at least €4,000 per affected vehicle.

In addition to the individual financial losses, these vehicles continue to pollute above legal limits until the manipulation devices are removed, causing damage to the environment and public health.

If the court rules in favour of Ius Omnibus, the companies could be ordered to compensate consumers for the excess amounts paid.

Identification of the Parties

Plaintiff: Associação Ius Omnibus

Defendants: Volkswagen AG, Volkswagen Finance Luxemburg S.A., Volkswagen Digital Solutions, Unipessoal LDA, Audi AG, Seat S.A., Skoda Auto AS, Porsche Holding GMBH, SIVA – Sociedade de Importação de Veículos Automóveis, S.A.

Court

Lisbon District Court – Central Civil Court (Judge 7)

Request (in summary)

a) That it be declared that the Defendants installed and maintained Illegal Defeat Devices in the Affected Vehicles, identified by specifying the types of engines affected, the models covered and their respective years, together with the relevant type-approval number and the relevant emissions standard;

b) A declaration that the Illegal Manipulation Devices result in an increase in NOx emissions beyond the legal limits;

c) It is hereby declared that the defendants’ conduct has caused and continues to cause harm to the public interest in the protection of public health, the environment and the consumption of goods and services, to the homogeneous individual interests and to the collective interests of the consumers represented;

d) The Defendants are ordered, jointly and severally, to pay full compensation to all consumers represented in this action for the damage caused to them by the unlawful practices in question.

The vehicles in question are light vehicles of the Audi, Seat, Skoda and Volkswagen brands (Affected Vehicles) fitted with an EA189 or EA288 diesel engine, type-approved in accordance with Euro 5 and Euro 6 up to Euro 6c standards, sold or otherwise marketed for the first time between 1 September 2009 and 30 September 2019, and registered in Portugal for the first time between 1 September 2009 and the date on which the judgment becomes final.

Status of the lawsuit

Pending

Consumer’s summons

04.03.2026 Order directing the summons of consumers so that, if they wish, they may intervene in the proceedings as principal parties or declare in the record whether or not they accept being represented by the Plaintiff, or whether, on the contrary, they exclude themselves from such representation, on pain of their inaction being deemed acceptance.

You can view the Court’s notice here.

What is the object of the action?

This is a class action to defend diffuse and homogeneous individual interests, brought by Ius Omnibus.

It is an action to defend consumer rights brought under Articles 52(3) and 60(3) of the Constitution of the Portuguese Republic, Articles 2, 5, 6 and 21 of the Class Actions Act, and Articles 31 and 546(2) of the Code of Civil Procedure.

What unlawful conduct by Volkswagen AG, Volkswagen Finance Luxemburg S.A., Volkswagen Digital Solutions, Unipessoal Lda., Audi AG, Seat S.A., Skoda Auto a.s., Porsche Holding GmbH, and SIVA - Sociedade de Importação de Veículos Automóveis, S.A., is at issue in this action?

The companies concerned – Volkswagen AG, Volkswagen Finance Luxemburg S.A., Volkswagen Digital Solutions, Unipessoal Lda., Audi AG, Seat S.A., Skoda Auto a.s., Porsche Holding GmbH and SIVA – Sociedade de Importação de Veículos Automóveis, S.A. – engaged in misleading practices relating to the installation of illegal devices that manipulated the pollutant emissions of their vehicles, in the case known internationally as ‘Dieselgate’.

Consumers residing in Portugal who are or were holders of a right granting them the use of light vehicles of the Audi, Seat, Skoda or Volkswagen brands (Affected Vehicles) were affected, provided that these vehicles:

  • Are fitted with EA189 or EA288 diesel engines;

  • Have been type-approved in accordance with Euro 5 and Euro 6 up to Euro 6c standards;

  • Were sold or placed on the market for the first time between 1 September 2009 and 30 September 2019;

  • Were first registered in Portugal between 1 September 2009 and the date on which the conviction became final.

The companies in question placed and kept the Affected Vehicles on the market knowing that they did not comply with the legal emission limits, in particular with regard to nitrogen oxides (NOx).

The vehicles were fitted with systems that altered the operation of the emission control mechanisms. These systems made the vehicles appear to comply with legal limits when tested in the laboratory, but under normal driving conditions – that is, on everyday roads – they emitted levels of pollutants far exceeding those permitted by law.

Consumers were exposed to advertising that highlighted the environmental benefits of diesel engines and the effectiveness of emission control systems, without being told that these systems were manipulated to circumvent legal limits.

As a result, consumers were misled as to the environmental characteristics of the vehicles, leading them to purchase vehicles they would not have bought – or would only have bought at a lower price – had they known the truth about their actual environmental performance.

Consumers paid a higher price for the Affected Vehicles than they would have done had it been known that the vehicles did not comply with legal emission limits. The price difference associated with vehicles fitted with illegal defeat devices amounts to at least €4,000 per vehicle.

Furthermore, unless these defeat devices are removed, the Affected Vehicles continue to emit NOx levels in excess of the legal limits, making them more polluting than permitted by law and contributing to negative impacts on the environment and public health.

Through these actions, the targeted companies have caused harm to the homogeneous individual interests of the consumers represented, as they paid a higher price for the Affected Vehicles.

Who is represented in this action?

This class action represents all consumers resident in Portugal who are or have been holders of a right granting the use of one or more light vehicles of the Audi, Seat, Skoda and Volkswagen brands (Affected Vehicles) with an EA189 or EA288 diesel engine, type-approved in accordance with the (Euro 5 and Euro 6, up to Euro 6c) sold or otherwise marketed for the first time between 1 September 2009 and 30 September 2019, and registered in Portugal for the first time between 1 September 2009 and the date on which the judgment of conviction becomes final.

Consumers do not need to take any action to be represented in the proceedings and to be entitled to compensation should the action be successful (they will only need to claim their compensation at that time).

Any consumer who does not wish to be represented in this action may exercise their right to opt out by notifying the court of their intention. Consumers may also decide to intervene in the proceedings in support of Ius Omnibus, within the time limit to be set by the Court.

What is being asked in this action?

In summary, Ius Omnibus asks the Court to:

a) Declare that the Defendants installed and maintained illegal defeat devices in the Affected Vehicles, identified by specifying the types of engines affected, the models covered and their respective model years, together with the relevant type-approval number and the relevant emissions standard;

b) Declare that this practice by the Defendants has caused and continues to cause harm to the public interest in the protection of public health, the environment and the consumption of goods and services, to the homogeneous individual interests and to the collective interests of the consumers represented;

c) The Defendants be ordered, jointly and severally, to fully compensate all consumers represented in this action for the damages caused to them by the unlawful practices in question.

d) The vehicles in question are light vehicles of the Audi, Seat, Skoda and Volkswagen brands (Affected Vehicles) fitted with an EA189 or EA288 diesel engine, type-approved in accordance with Euro 5 and Euro 6 up to Euro 6c standards, sold or otherwise marketed for the first time between 1 September 2009 and 30 September 2019, and registered in Portugal for the first time between 1 September 2009 and the date on which the judgment becomes final.

How do class actions and consumer redress work?

The mechanism for mass consumer compensation used here, provided for in the Portuguese rules on class actions, has not yet been tested in practice through to the final stage. However, according to the law, the following will happen if the court rules in favour of Ius Omnibus:

1) The court will set the total amount of compensation to be paid by Volkswagen AG, Volkswagen Finance Luxemburg S.A., Volkswagen Digital Solutions, Unipessoal LDA, Audi AG, Seat S.A., Skoda Auto AS, Porsche Holding GMBH, and SIVA – Sociedade de Importação de Veículos Automóveis, S.A., to consumers, and shall determine the method of distributing individual compensation to each consumer (for example, direct payment by a Defendant, or distribution by an entity appointed by the court);

2) The court will set the method and deadline for represented consumers to claim their share of the compensation (not distributed directly), and this information will be publicised in various ways;

3) Consumers (who do not receive compensation directly from a Defendant) will need to contact the entity responsible for managing the compensation fund, as well as submit the evidence required by the court and payment instructions, in order to receive their share of the compensation;

4) At the end of the period set by the court, if any part of the total compensation amount remains unclaimed by consumers:

(i) This amount will be used to pay the costs incurred by Ius Omnibus in connection with the proceedings;

(ii) Any remaining amount will be handed over to the State, with 60% going to the Fund for the Promotion of Consumer Rights and 40% to the Institute for Financial Management and Judicial Equipment, I.P.

Do consumers need to contact the Court or Ius Omnibus?

Consumers do not have to contact the Court or Ius Omnibus, but it may be in their interest to do so.

All consumers resident in Portugal who are or have been holders of a right granting the use of one or more passenger cars of the Audi, Seat, Skoda and Volkswagen brands (Affected Vehicles) fitted with an EA189 or EA288 diesel engine, type-approved in accordance with (Euro 5 and Euro 6, up to Euro 6c), sold or otherwise marketed for the first time between 1 September 2009 and 30 September 2019, and registered in Portugal for the first time between 1 September 2009 and the date on which the conviction becomes final.

If you do not wish to be represented, you will need to exercise your right to opt out.

If you wish to be represented, you do not need to do anything else for the time being to be entitled to compensation should Ius Omnibus win this case.

At the end of the proceedings, should the action be successful, you may contact the body designated by the Court (where applicable) to claim your compensation.

However, if you wish to intervene in the case in support of Ius Omnibus, you may do so within the time limit to be set by the Court.

All consumers represented in this action are invited to contact Ius Omnibus immediately so that their details can be recorded and they can be kept informed by Ius Omnibus of all developments in the case, ensuring they do not miss the opportunity to claim their compensation when the time comes. They can do so using the form available on this page.

How is this case funded?

Preparing a claim of this nature properly, to ensure its success, is extremely costly, requiring the hiring of specialist lawyers and consultants. The success of the claim depends on the proper handling of extensive and technical facts within an extremely complex area of legal, economic and technological knowledge. An effective response is also subject to the vast financial and human resources that will be mobilised by the opposing parties.

However, consumers will never have to pay any sum, bear any costs or waive any part of the compensation to which they are entitled. The case is funded by an entity specialising in litigation funding, FSF 1, LLC.

The funding agreement is subject to the court’s scrutiny, and the funder cannot interfere with or determine how Ius Omnibus manages the proceedings.

The funder assumes all risk and costs. If Ius Omnibus loses the case, the funder is not entitled to any compensation. If Ius Omnibus wins the case, the funder will receive the amount that the Court deems appropriate and fair.

The financier will only receive this amount if part of the total compensation paid by the Defendants remains after the deadline for consumers to claim individual compensation has expired. The remaining amount is then allocated in accordance with the applicable legal provisions.

Case Status:
Ongoing

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