Volkswagen may face U.S. SEC lawsuit over failure to disclose emissions cheating
(Adds how scandal became public)
By David Shepardson
WASHINGTON, March 14 (Reuters) - Volkswagen AG
said the U.S. Securities and Exchange Commission may sue the
German automaker over its failure to disclose its diesel
emissions scandal to investors.
VW said in its annual report https://bit.ly/2HlE1Su released
earlier this week that the SEC probe focuses on the automaker's
nondisclosure of "certain Volkswagen diesel vehicles'
noncompliance" with U.S. emissions rules.
Volkswagen did not have an immediate comment.
Volkswagen has agreed to pay more than $25 billion in the
United States in connection with "Dieselgate" for claims from
owners, environmental regulators, states and dealers, and has
offered to buy back about 500,000 polluting U.S. vehicles.
VW admitted in September 2015 to secretly installing
software in nearly 500,000 U.S. vehicles to cheat government
exhaust emissions tests and pleaded guilty in 2017 to felony
charges. In total, 13 people have been charged in the United
States, including four Audi managers.
Regulators and investors have sought penalties and damages
from Volkswagen, arguing the carmaker should have informed
investors in a more timely fashion about the size and scope of
fines related to its diesel emissions cheating scandal. German
securities law requires Volkswagen to publish market sensitive
news in a timely fashion.
Volkswagen admitted to U.S. regulators to having used an
illegal “defeat device” on Sept. 3, 2015 but did not inform
investors. The U.S. Environmental Protection Agency and
California’s Air Resources Board made VW’s cheating public on
Sept. 18, 2015.
Volkswagen has argued that it was not obliged to inform
investors earlier because it did not believe it was facing fines
in totaling billions of dollars.
(Reporting by David Shepardson
Editing by Lisa Shumaker and Dan Grebler)
First Published: 2019-03-14 20:11:47
Updated 2019-03-14 20:56:08
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