Volkswagen and former boss face US lawsuit over Dieselgate
The US is suing Volkswagen, accusing the German carmaker of “massive fraud” over the diesel emissions scandal.
The Securities and Exchange Commission (SEC) claims the company misled buyers by way of issuing billions of bucks price of bonds and securities, with out disclosing that the corporate had cheated emissions exams.
Volkswagen’s former leader govt Martin Winterkorn may be being sued.
The company stated it might contest the SEC lawsuit vigorously.
VW first admitted in September 2015 that it had used unlawful instrument to cheat US emissions exams. But between April 2014 and May 2015 the carmaker had bought $13bn (£10bn) of bonds and securities to US buyers, at a time when executives have been already mindful that unlawful instrument have been put in to control emissions exams, in line with the SEC’s go well with.
The SEC stated that in consequence, Volkswagen “reaped hundreds of millions of dollars in benefit by issuing the securities at more attractive rates for the company”.
The company “repeatedly lied to and misled United States investors, consumers, and regulators as part of an illegal scheme to sell its purportedly ‘clean diesel’ cars and billions of dollars of corporate bonds and other securities in the United States,” the SEC added.
The go well with seeks to bar Mr Winterkorn, who resigned when the scandal turned into public, from serving as an officer or director of a public US corporate. He has been charged within the US with conspiring to hide up the emissions dishonest scandal. However Germany does no longer extradite its personal electorate.
The go well with additionally seeks to get better “ill-gotten gains” together with civil consequences and pastime.
Volkswagen has already agreed to pay greater than $25bn within the US over the emissions scandal together with prison and civil fines.
The company stated in a remark the SEC grievance used to be “legally and factually flawed”.
It stated the securities in query have been bought “only to sophisticated investors who were not harmed and received all payments of interest and principal in full and on time” and stated that Mr Winterkorn had performed no phase within the gross sales of the ones securities.