Securities and Exchange Commission claims the firm and its former chief executive misled investors; Volkswagen denies charges
James Attwood, digital editor
15 March 2019

The United States Securities and Exchange Commission (SEC) has sued Volkswagen and its former chief executive Martin Winterkorn, claiming it defrauded investors in relation to its handling of the Dieselgate scandal. The firm has said it will "vigorously" contest the charges.

According to the SEC, the charges relate to more than $13 billion (£9.8 billion) in bonds Volkswagen issued between April 2014 and May 2015. That was the time period between the publication of the initial study that found higher than claimed emission levels from VW Group diesel-engined cars and the firm’s admission it had installed ‘defeat devices’. 

The SEC complaint alleges that Volkswagen made false and misleading statements to investors about its financial standing, vehicle quality and environmental compliance. It says that “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”.

Volkswagen issued a statement, saying that: “The SEC’s complaint is legally and factually flawed, and Volkswagen will contest it vigorously.”

The firm added that the securities were “sold only to sophisticated investors who were not harmed and received all payments of interest and principal in full and on time.

“The SEC does not charge that any person involved in the bond issuance knew that Volkswagen diesel vehicles did not comply with US emissions rules when these securities were sold, but simply repeats unproven claims about Volkswagen AG’s former CEO, who played no part in the sales.”

The SEC suit seeks to recover “ill-gotten gains” through civil penalties and fines, and also calls for Winterkorn to be barred from serving as a director of a US company.

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Volkswagen has already paid more than £18.8 billion in the US in criminal and civil fines and other settlements relating to Dieselgate. It is currently defending its actions in an ongoing court case in Germany, where investors are pursuing around £8.2 billion in damages.

Read more

Greed, lies and deception: the Dieselgate scandal laid bare

How Volkswagen plans to clean up after Dieselgate

German Volkswagen owners seek Dieselgate compensation

VW Dieselgate woes continue after German court decision

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Comments
19

15 March 2019

The firm added that the securities were “sold only to sophisticated investors who were not harmed and received all payments of interest and principal in full and on time."

Next time I get caught for speeding I'll be using a similar defence, something along the lines of "yes I was doing 85 in a 70 but I didn't crash"

typos1 - Just can’t respect opinion

15 March 2019

and VW tells the UK to sod off when it comes to legal action - they need to be bankrupted and sold off, that way it would deter any other company from lying, misleading and screwing the buying public.

 

15 March 2019
jonboy4969 wrote:

and VW tells the UK to sod off when it comes to legal action - they need to be bankrupted and sold off, that way it would deter any other company from lying, misleading and screwing the buying public.

um... just a minute.

u have a pic of a range rover there, am i right in saying that JLR have just recalled not only diesel cars but ALSO petrol models?

if i were you i would swallow your words and write you stupid comments somewhere else.


Whatever happens, don't get an electric.

16 March 2019
lynx_800 wrote:

jonboy4969 wrote:

and VW tells the UK to sod off when it comes to legal action - they need to be bankrupted and sold off, that way it would deter any other company from lying, misleading and screwing the buying public.

um... just a minute.

u have a pic of a range rover there, am i right in saying that JLR have just recalled not only diesel cars but ALSO petrol models?

if i were you i would swallow your words and write you stupid comments somewhere else.

Your comparison of quality to dishonesty is sheer dishonesty

17 March 2019
lynx_800 wrote:

jonboy4969 wrote:

and VW tells the UK to sod off when it comes to legal action - they need to be bankrupted and sold off, that way it would deter any other company from lying, misleading and screwing the buying public.

um... just a minute.

u have a pic of a range rover there, am i right in saying that JLR have just recalled not only diesel cars but ALSO petrol models?

But I don't think JLR have spent 6 months or so denying to the authorities that there is a problem, only coming clean when those same authorities threatened to revoke the licences allowing them to sell their cars there.  The UK government should have taken proper action against VW ages ago, to recoup all the lost VEL and company car tax revenue from  the artificially low co2 levels they were claiming for their vehicles.

15 March 2019
.....silly Brits buy them (not this one as I saw the hype years ago before dieselgate). Faultswagen!

15 March 2019

That wall ain't gonna pay for itself!

15 March 2019
Okay. I'm a bit lost here. How can, what Volkswagen did, be termed as "alleged Dieselgate fraud?" They have spent billions publicly washing their sins. VW did not cough up billions in fines in the USA, Canada, Korea, India and Germany for mere allegations!

15 March 2019

This is just the tip of a very big Iceberg......

Peter Cavellini.

16 March 2019
Nice to see this continuing really glad Vw are feeling the full force of their actions, and their unfair cheating against rival manufacturers on emmisions making out they were cleaner. I for one would never buy a VAG product. Wouldn't careless if it finished the brand.

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