of holding back market-moving information on rigged emissions tests four years ago. The prosecutors said on Tuesday they would press criminal charges of stock market manipulation against Diess, as well as non-executive chairman Hans Dieter Poetsch andVW, which in September 2015 admitted using trick software a.k.a. defeat devices to cheat US emissions tests, has coughed out more than $30 billion in vehicle refits, fines and provisions.
Volkswagen shares lost up to 37% in value in the days after the scandal broke. Had investors known about the emissions test cheating, they might have sold shares earlier or not made purchases, the plaintiffs argue.The carmaker is holding firm though. Lawyers for the three men said they would contest the charges that they knowingly held back vital information. VW said its full supervisory board would convene today to discuss the indictments.
Diess’s lawyer said the indictment would not affect his role as CEO, adding that as Diess – which prior to being group CEO was chairman of the board at the Volkswagen brand – did not join the company until July 2015, he could not have foreseen the scandal would have such a big impact on the company. Volkswagen and its executives have said the fallout from the scandal was not foreseeable, and that they had expected to reach a settlement with US authorities prior to the disclosure of the test cheating. Braunschweig prosecutors said the accused should have kept investors informed. “They pursued a strategy to achieve a settlement with the US authorities without disclosing all relevant information,” they said in a statement.
Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.Germany really means business. When something is wrong they prosecute, even if it is the largest company in the country.
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