The SEC charged an automotive manufacturing company, two of its subsidiaries and its former CEO (collectively, the "Defendants") with defrauding U.S. investors by making a series of deceptive claims about the company’s "clean diesel" fleet while issuing billions of dollars' worth of corporate bonds and other securities.
In a Complaint filed in the U.S. District Court of the Northern District of California, the SEC alleged that Volkswagen Aktiengesellschaft ("Volkswagen") issued over $13 billion in bonds and asset-backed securities in the U.S. markets while senior executives were aware that over 500,000 vehicles in the U.S. exceeded the legal vehicle emissions limits.
The SEC requested that the Court enter a judgment ordering the Defendants to, among other things, (i) disgorge all ill-gotten gains and (ii) pay a civil monetary penalty. The SEC is also seeking an officer and director bar against Volkswagen’s former CEO.
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