by issuing billions of dollars worth of bonds and securities, without disclosing that it had cheated emissions tests. Volkswagen's former chief executive Martin Winterkorn is also being sued.
The company said it would contest the SEC lawsuit vigorously.VW first admitted in September 2015 that it had used illegal software to cheat US emissions tests. But between April 2014 and May 2015 the carmaker sold $13bn (£10bn) of bonds and securities to US investors, at a time when executives were already aware
that illegal software had been installed to manipulate emissions tests, according to the SEC's suit.
that illegal software had been installed to manipulate emissions tests, according to the SEC's suit.
The SEC said that as a result, Volkswagen "reaped hundreds of millions of dollars in benefit by issuing the securities at more attractive rates for the company".
When the scandal was uncovered, VW's share price sank nearly 40%.The firm "repeatedly lied to and misled United States investors, consumers, and regulators as part of an illegal scheme to sell its purportedly 'clean diesel' cars and billions of dollars of corporate bonds and other securities in the United States," the SEC added.
The suit seeks to bar Mr Winterkorn, who resigned when the scandal became public, from serving as an officer or director of a public US company. He has been charged in the US with conspiring to cover up the emissions cheating scandal. However Germany does not extradite its own citizens. The suit also seeks to recover "ill-gotten gains" along with civil penalties and interest.
Volkswagen pleaded guilty in March 2017 to criminal charges that it deceived US regulatory agencies, including the Environmental Protection Agency and the California Air Resources Board, by installing so-called software defeat devices in diesel vehicles emissions control systems.
The devices, which allowed vehicles to perform better in test conditions than they did on the road, were installed on almost 600,000 vehicles sold in the US from 2009 though 2015 and millions more globally. They came to light after a study of emissions by researchers at West Virginia University. The scandal has sparked investigations in Germany and other countries........
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FACEBOOK COMMENTS
Rhaymond Ignito Larhmviv
America get lots of problem sef... recently they sue Huawei group,now Volkswagen....a
Endy Edeson
Rhaymond Ignito Larhmviv They want to make sure due process are followed by companies or investors . It's for checks
Johnson Ahile
If true, Volkswagen act is very bad. imagine, deceiving customers with false car features
Niyeck Nandack
So, even the Germans are Kworap. Buhari should go and kill Kworaption there before Kworaption kills Germany. Oga Madam Merkel, invite "Mr Integrity"
Endy Edeson
Niyeck Nandack I laughed out loud after reading this news. If the allegations instituted by America are true, then German's Volkswagen are "Oga" in corruption 😀