German prosecutors are investigating whether Volkswagen may be guilty of market manipulation because the carmaker deliberately delayed a statement about its diesel emissions manipulation. Former chief executive Martin Winterkorn is one of two former VW board members under investigation.
The prosecutor in the city of Braunschweig, which is located close to VW’s headquarters in Wolfsburg, said in a statement the carmaker had reported on the diesel rigging scandal on September 22 in accordance with the legal obligation to make public statements on market sensitive information.
“However, there are sufficient factual indications that this obligation to issue a statement about the expected substantial financial losses for the company could have occurred at an earlier point in time,” the Braunschweig prosecutors’ office said.
VW’s preference shares gave up some of their gains on Monday afternoon, but still traded up 4.8 percent at €124.55, or $141.25, at 3.41 p.m. in Frankfurt amid a broad market recovery.