“It's a no-holds-barred battle, and no CEO is spared.”

The Federal Court of Justice’s ruling of September 30, 2025 (Case No. II ZR 154/23) regarding the Volkswagen Group’s settlements with former members of the Executive Board and their directors’ and officers’ liability insurers has caused quite a stir in the legal and business press: The court in Karlsruhe declared the coverage settlement with the insurers, totaling approximately 270 million euros, null and void. VW had failed to adequately inform shareholders of the implications of the resolution before they approved the settlement. The court cast serious doubt on the liability settlements with Martin Winterkorn and Rupert Stadler, as the Group’s management had apparently not sufficiently investigated how much the former decision-makers could actually have contributed toward compensation for damages.

In interviews with the FAZ on October 2, 2025 (available online here for subscribers) and WirtschaftsWoche (available here), Dr. Mark Wilhelm analyzes the decision and examines the potential consequences not only for VW, but for all publicly traded companies and their managers, as well as D&O insurers in Germany.