In a civil complaint on Thursday, the 14th of March 2019, the US SEC (Securities and Exchange Commission) had sued Volkswagen and its former CEO, Martin Winterkorn over alleged diesel emission scandal, accusing the German carmaker and its former CEO of “massive fraud” on the US investors.
The origin of the latest case dated back to 2015, when the world’s top-selling automakers had been caught using illegal software to bypass the US pollution tests, resulting in a widespread bitter response over the automaking giants mendacious attempt.
Over the recent past, the regulators and investors had been arguing that the carmaker should have informed about the scandal sooner, while the German carmaker came up with an apparently vague causes belly that they were not sure about the extent of penalties which could extend billions, while others with similar offences paid a much smaller sum.
According to SEC’s civil complaint, the Volkswagen issued over $13 billion in asset-backed securities and bonds, deceiving the investors between April 2014 to May 2015, while the former VW CEO knew that at that time, over 5,00,000 US diesel vehicles had been violating legal emission limits.
Addressing to VW’s repeated lies and malicious representation of their assets, the US SEC said, “VW reaped hundreds of millions of dollars in benefit by issuing the securities at more attractive rates for the company, 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”.