Dieselgate Consequences

VW Investigated For Market Manipulation

winterkorn dpa 2008 auto exhibition
Martin Winterkorn when he was still chief executive of VW.
  • Why it matters

    Why it matters

    If VW is found guilty of market manipulation, it will strengthen the case of shareholders to demand damages payments over the diesel emissions scandal.

  • Facts

    Facts

    • Volkswagen admitted last September it had manipulated around 11 million diesel vehicles worldwide, plunging the firm into crisis.
    • The diesel emissions scandal has already cost the company more than €16 billion.
    • The VW supervisory board has stated that it was unaware of any serious breaches of duty by current or former members of the board of management.
  • Audio

    Audio

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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.

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