The U.S. Securities and Exchange Commission said today that it 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.
The SEC’s complaint, filed on 14 March 2019, alleged,** among other things, that from April 2014 to May 2015, VWGOAF issued more than $8 billion in bonds at a time when senior VW executives knew that more than 500,000 of their vehicles in the U.S. grossly exceeded legal vehicle emissions limits, exposing the company to massive financial and reputational harm. The complaint said that VWGOAF made false and misleading statements to investors and underwriters about vehicle quality, environmental compliance, and VW’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 20 August 2020. These actions have resolved the SEC’s case against Volkswagen in its entirety.
*VWGOAF is the financing subsidiary of Volkswagen Group of America, Inc.
*AutoInformed on
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
SEC Gets Final Judgment Against Volkswagen on Dieselgate
The U.S. Securities and Exchange Commission said today that it 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.
The SEC’s complaint, filed on 14 March 2019, alleged,** among other things, that from April 2014 to May 2015, VWGOAF issued more than $8 billion in bonds at a time when senior VW executives knew that more than 500,000 of their vehicles in the U.S. grossly exceeded legal vehicle emissions limits, exposing the company to massive financial and reputational harm. The complaint said that VWGOAF made false and misleading statements to investors and underwriters about vehicle quality, environmental compliance, and VW’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 20 August 2020. These actions have resolved the SEC’s case against Volkswagen in its entirety.
*VWGOAF is the financing subsidiary of Volkswagen Group of America, Inc.
*AutoInformed on
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.