SEC may charge Volkswagen over diesel scandal

SEC may charge Volkswagen over diesel scandal


Hoses connect laboratory emission testing equipment to a red 2016 Volkswagen AG Golf TDI inside the California Air Resources Board Haagen-Smit Laboratory in El Monte, California.

Patrick T. Fallon | Bloomberg | Getty Pictures

Hoses join laboratory emission testing gear to a crimson 2016 Volkswagen AG Golf TDI contained in the California Air Assets Board Haagen-Smit Laboratory in El Monte, California.

The Securities and Exchange Commission might take enforcement motion towards Volkswagen over the German automaker’s involvement within the “dieselgate” emissions scandal, in accordance with VW’s annual report.

The automaker mentioned the company is ‘piling on’ and that the company’s grievance is with out advantage.

The company instructed Volkswagen it opened in January 2017 a proper investigation, which is ongoing and will end in an enforcement motion, in accordance with the annual report. The SEC can situation fines and different civil penalties for violations of securities legislation.

The SEC has requested Volkswagen for info on potential securities legislation violations over sure investments the corporate might have offered to buyers. The company is in search of proof figuring out whether or not the automaker didn’t disclose details about automobiles that did not adjust to U.S. emission requirements when it issued sure securities to buyers.

The SEC declined to remark to CNBC. Volkswagen mentioned the grievance is “legally and factually flawed and that the automaker will “contest it vigorously.”

One of many world’s largest carmakers, Volkswagen was rocked by studies first surfacing in 2015 that it had been caught dishonest on emissions exams in the US. The following scandal value Volkswagen billions of to settle and compelled the automakers to recall thousands and thousands of automobiles.

Right here is Volkswagen’s full assertion:

“The SEC’s grievance is legally and factually flawed, and Volkswagen will contest it vigorously,” the automaker mentioned to CNBC. “The SEC has introduced an unprecedented grievance over securities offered solely to stylish buyers who weren’t harmed and obtained all funds of curiosity and principal in full and on time. The SEC doesn’t cost that any particular person concerned within the bond issuance knew that Volkswagen diesel automobiles didn’t adjust to U.S. emissions guidelines when these securities had been offered, however merely repeats unproven claims about Volkswagen AG’s former CEO, who performed no half within the gross sales. Regrettably, greater than two years after Volkswagen entered into landmark, multibillion-dollar settlements in the US with the Division of Justice, virtually each state and almost 600,000 customers, the SEC is now piling on to attempt to extract extra from the corporate.”

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