German Prosecutors Charge Current And Ex-VW CEOs With ‘Market Manipulation’

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German Prosecutors Charge Current And Ex-VW CEOs With ‘Market Manipulation’.

In this file photo taken on May 14, 2019, Herbert Diess , CEO of German carmaker Volkswagen , and the company’s supervisory board chairman Hans Dieter Poetsch pose as they arrive for his company’s annual general meeting in Berlin./ AFPGerman prosecutors said Tuesday they had charged Volkswagen chief executive Herbert Diess, former boss Martin Winterkorn and supervisory board chief Hans Dieter Poetsch with “market manipulation” relating to the car giant’s “dieselgate” scandal.

Tuesday’s move means the trio are on the threshold of a full trial, like Rupert Stadler, former head of Volkswagen subsidiary Audi, who was charged by Munich prosecutors in July.At issue is the sprawling 12-brand Volkswagen group’s 2015 admission to manipulating 11 million vehicles worldwide to fool regulators’ emissions tests.

Diess, Winterkorn, and Poetsch — who all sat on the executive board in 2015 — failed to inform investors of the cheating as soon as they knew about it and the massive financial risks for the company, “against their legal obligation,” prosecutors said.In early September, he told AFP at the Frankfurt IAA car show that there was “no question” he would step down if charged.

It has cost VW alone more than 30 billion euros in fines, legal costs and compensation payments to car owners — the vast majority in the United States.

 

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