Volkswagen Aktiengesellschaft, et al.

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 25969 / April 5, 2024

Securities and Exchange Commission v. Volkswagen Aktiengesellschaft, et al., No. 19-cv-1391 (N.D. Cal. filed Mar. 14, 2019)

SEC Obtains Final Judgment Against Volkswagen Financing Subsidiary in Connection With "Clean Diesel" Emissions Fraud

On April 3, 2024, the Securities and Exchange Commission obtained final judgment by consent against defendant Volkswagen Group of America Finance, LLC ("VWGOAF"), which the SEC had charged in 2019 with making false and misleading statements in connection with its 2014 and 2015 offerings of billions of dollars of corporate bonds. VWGOAF is the financing subsidiary of Volkswagen Group of America, Inc.

The SEC's complaint, filed on March 14, 2019, alleges, among other things, that from April 2014 to May 2015, VWGOAF issued more than $8 billion in bonds in the U.S. markets at a time when senior Volkswagen executives knew that more than 500,000 of their vehicles in the United States grossly exceeded legal vehicle emissions limits, exposing the company to massive financial and reputational harm. The complaint alleges that VWGOAF made false and misleading statements to investors and underwriters about vehicle quality, environmental compliance, and Volkswagen's financial standing.

VWGOAF, without admitting or denying the SEC's allegations, consented to the entry of a final judgment permanently enjoining it from violations of the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The final judgment orders VWGOAF to pay $34.35 million in disgorgement and $14.4 million in prejudgment interest. Following the entry of the final judgment, the SEC dismissed its outstanding claims against VWGOAF's ultimate parent company, Volkswagen AG, and Volkswagen AG's former CEO, Martin Winterkorn. The Court had previously dismissed the SEC's claims against VW Credit, Inc. on August 20, 2020.

The above actions have resolved the SEC's case against Volkswagen in its entirety.