SEC Charges VW With Defrauding Investors
15 March 2019 - 9:08PM
Dow Jones News
By WSJ City
The US Securities and Exchange Commission said it charged
Volkswagen, two of its units and former CEO Martin Winterkorn with
defrauding US bond investors.The SEC said the German auto maker
raised billions of dollars through the corporate bond and
fixed-income markets, while making a series of deceptive claims
about the environmental impact of the company's "clean diesel"
fleet.
KEY FACTS
--- The SEC's complaint covers from April 2014 to May 2015, when
it says VW issued more than $13bn in bonds and asset-backed
securities in US markets.
--- It alleges senior executives knew that more than 500,000
vehicles in the US grossly exceeded legal vehicle-emissions
limits.
--- That exposed the company to massive financial and
reputational harm.
--- The SEC's complaint alleges that VW made false and
misleading statements to investors and underwriters about vehicle
quality, environmental compliance, and its financial standing.
--- VW on Friday called the complaint "legally and factually
flawed" and said it would contest the charges "vigorously."
The Backstory
VW's emissions cheating came to light in September 2015, when
Volkswagen admitted some 11m of its diesel vehicles world-wide were
equipped with software that allowed them to sidestep emissions
testing.In late 2016, Volkswagen pleaded guilty to conspiracy to
defraud the US government over emissions levels for its diesel
cars. The company also agreed to pay nearly $25bn in fines,
penalties and compensation after it settled a number of civil
lawsuits. Two Volkswagen employees caught up in the scandal have
faced charges in the US, with one sentenced to just over three
years in prison.
A fuller story is available on WSJ.com
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(END) Dow Jones Newswires
March 15, 2019 05:53 ET (09:53 GMT)
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