Volkswagen logo is seen in this illustration taken July 28, 2025. REUTERS/Dado Ruvic/Illustration

FRANKFURT (Reuters) -Germany's top appeals court quashed on Tuesday a lower court's decision to back a settlement by Volkswagen over directors' and officers' liability insurance coverage in the so-called dieselgate case.

The Federal Court of Justice said that the lower court would have to hear the case again and decide on legal challenges against annual general meeting votes in favor of liability settlements with former management board members.

(Reporting by Ludwig BurgerEditing by Madeline Chambers)