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|Volkswagen can be sued anywhere in the EU, says top court, illustration photo|
The case stemmed from Austria, where a consumer organisation is seeking at least 3.6 million euros ($4.1 million) on behalf of hundreds of car owners.
"A motor vehicle manufacturer whose unlawfully manipulated vehicles are resold in other member states may be sued in the courts of those states," a court statement said.
Since the scandal broke, Volkswagen has had to deal with numerous legal actions, both criminal and civil.
A top German court ruled in May that Volkswagen must buy back a diesel car it had modified, a decision that could influence outcomes in thousands of other "Dieselgate" cases.
One of the next major trials expected in Germany is that of former Audi boss Rupert Stadler, who is due to appear in court from September 30.
The total bill for the Volkswagen scandal is expected to exceed 30 billion euros, including several billion in the United States to compensate customers.