Volkswagen's problems have just begun, lawsuits could push firm to bankruptcy

The world has come crashing down for Volkswagen ever since the news about its emission scandal broke. Martin Winterkorn, Volkswagen Chief Executive, resigned on Wednesday stating, “Volkswagen needs a fresh start - also in terms of personnel. I am clearing the way for this fresh start with my resignation.”

However, it seems the “fresh start” is a distant dream at least for the time being. While the company has to deal with angry VW dealers and customers on one hand, it could be facing myriad of class-action lawsuits on the other.

Hoping to get a car with “cleaner” technology, Christopher and Lauren Monroe bought a 2010 Volkswagen Jetta TDI sedan. With the emission scandal out in the open, they were left fuming.

“In an ideal world, I want them to show up at my door with a check for $27,000. I'd tell them, 'There’s the car, take it and good luck to you'," Monroe told IBTimes.

Like Monroe there are several other agitated customers who want answers from the German car maker and plan to join class-action lawsuit against the company.

DailyMail UK reports that no less than 25 lawsuits involving claimants from all 50 states in the U.S. have been filed against the company. Moreover, on Thursday, at least 27 U.S. state attorneys general initiated a multi-state investigation of the company over its representations to consumers of its diesel vehicles, a spokeswoman for Illinois Attorney General Lisa Madigan told Reuters. She added that as part of the probe, the group will send subpoenas to Volkswagen.

Investors warn that these multi-billion lawsuits could bankrupt the company. Its shares have plunged as much as 40 percent since last Friday, when it admitted to U.S. regulators that it programmed its car to detect when they were being tested and alter the running of their diesel engines to conceal their true emissions. The crisis deepened on Thursday, when Germany's transport minister said Volkswagen had manipulated tests in Europe too, according to Reuters.