FILE PICTURE: Herbert Diess, will become the CEO of the German car maker, Volkswagen AG, gestures in front of the ID.3 is a pre-production prototype of an electric car during a preview of the world’s largest car maker, on the eve of the international motor show in Frankfurt, IAA, in Frankfurt, Germany on the 9th of September 2019. REUTERS/Wolfgang rattay
FRANKFURT (Reuters) – German prosecutors have not brought criminal charges of stock market manipulation against the Volkswagen VOWG_p.DE executive officer Herbert Diess, former CEO, Martin Winterkorn, and Chairman Hans-Dieter Poetsch, in connection with the vehicle emissions from the cheating scandal.
The defendant intentionally failed to inform investors about the financial impact of the scandal, the prosecutors’ office in the northern city of Braunschweig said on Tuesday.
Court proceedings are underway concerning the company’s authorisation by 2015, and the use of illegal engine-control software for rig diesel emissions testing. The Brunswick plaintiffs’ complaint is part of a separate legal pressure to try to to the managers over allegations they delayed the release of a scandal in the investment community.
Diess’ lawyer, said in a statement that the CEO will not be able to provide the financial markets with the game, and that he would have to remain undisturbed in his role as chief executive officer.
- VW’s Diess, will stay on as the CEO of the German public prosecutors, in the indictment
- Volkswagen’s board members to discuss the indictment of the CEO spokesperson
Winterkorn resigned from his position in the days after the scandal broke out. He also told German lawmakers at the beginning of 2017, and that he did not know about the affair rather than the VW, and had been officially admitted.
VOLKSWAGEN shares have lost 37 percent in value in the days after the scandal broke out.
Had investors known about the VW’s to cheat, they could have sold the shares earlier or to not purchase at all, prosecutors have argued.
Reporting by Ludwig Burger; Editing by Thomas Seythal and Mark Potter