Bayerische Moterenwerke Ag (PK) (BAMXF) News

BMW To Settle SEC Charges Of Reporting Inflated Sales For $18M

9/25/20, 2:18 AM
September 25, 2020 03:18 AM ET (BZ Newswire) -- Government

Bayerische Motoren Werke AG (OTC:BAMXF) and two of its subsidiaries in the United States have settled charges Thursday related to their corporate bond offerings with the authorities.

What Happened: The three companies allegedly disclosed inaccurate and misleading information on their retail sales volume during their $18 billion debt offerings, the United States Securities and Exchange Commission said in a statement Thursday.

The SEC said that the German automaker and the two U.S. subsidiaries agreed to pay a penalty of $18 million without admitting or denying the allegations leveled by it.

The companies have agreed to cease and desist from future violations of the concerned provisions, the SEC said.

“Through its repeated disclosure failures, BMW misled investors about its U.S. retail sales performance and customer demand for BMW vehicles in the U.S. market while raising capital in the U.S.,” the SEC Director of the Division of Enforcement Stephanie Avakian said.

Why It Matters: The SEC noted the cooperation extended by BMW in its investigation amid the COVID-19 pandemic.

The SEC is also probing automaker Nikola Corporation (NASDAQ:NKLA) for deceiving investors about its business prospects. A parallel investigation is also underway by the Department of Justice.

In July, UBS Group AG (NYSE:UBS) paid $10 billion to settle charges after the SEC alleged that the Swiss bank allocated municipal bonds meant for small investors to flippers, who sold them for profit immediately.

Price Action: BMW OTC shares closed mostly unchanged at $71.45 on Thursday.

Photo courtesy: Tamer Aburabah via Wikimedia

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