The lawsuit stems from the German automaker's notorious 2015 scandal, when illegal software was used to cheat U.S. emissions tests.
The SEC alleges that top Volkswagen executives were told that millions of its vehicles had been equipped with emissions cheat devices in November 2007. By Taylor Telford Taylor Telford Reporter covering national and breaking news Email Bio Follow March 15 at 8:19 AM The U.S. Securities and Exchange Commission is suing Volkswagen and its former chief executive, alleging they defrauded investors during the German auto giant’s notorious diesel emissions scandal.
“Volkswagen made false and misleading statements to investors and underwriters about vehicle quality, environmental compliance, and VW’s financial standing,” the regulator said in the summary of its complaint. “By concealing the emissions scheme, Volkswagen reaped hundreds of millions of dollars in benefit by issuing the securities at more attractive rates for the company.”
“The S. E. C. has brought an unprecedented complaint over securities sold only to sophisticated investors who were not harmed and received all payments of interest and principal in full and on time,” Volkswagen said in the statement. In June 2016, Volkswagen paid $14.7 billion to settle shareholder claims from the scandal, in one of the biggest class-action settlements in U.S. history. In January 2017, Volkswagen paid $4.3 billion in criminal and civil fines after the company pleaded guilty in a case brought by the U.S. Department of Justice. It was the first time the company had ever pleaded guilty to criminal conduct in court.
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