Volkswagen hit with Australian class-action lawsuit over emissions scandal

Troubled German carmaker Volkswagen has been hit with its first Australian class action lawsuit for selling vehicles that contained emissions defeating devices.

Bannister Law on Monday said it has filed two class actions against the German auto-giant in Australia's federal court which could amount to billions of dollars in financial compensation for the estimated 91,000 affected local cars.

"In supplying cars containing the defeat device, the statutory guarantee was not complied with. If we're successful on that part of the claim, the customer may be entitled to a refund of the purchase," class principal Charles Bannister said in a statement.

Earlier in October Volkswagen announced a recall of 91,000 Volkswagen and Audi automobiles, sold between 2008 and 2015 that have been caught up in the global diesel emissions-rigging scandal, putting it in line with the German head office's plans to start recalling up to 11 million diesel vehicles world-wide starting in January.

Volkswagen has suspended local sales of affected vehicles fitted with 1.6 or 2.0-liter EA189 diesel engines after talks with Australia's government over how it would deal with the problem.

Australian regulators are currently investigating the troubled auto-giant and have warned that the company faces millions of dollars in possible fines for breaking mandatory safety standards and misleading customers.

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