Former Volkswagen chief Martin Winterkorn is under investigation in Germany for alleged market manipulation. Prosecutors in Germany have accused Winterkorn, and another former board member, of withholding information from investors about VW’s emissions scandal.
Winterkorn resigned as VW Group CEO last September when it became clear that Volkswagen cheated to pass some models through tough diesel emission test standards in the US. The point of contention is whether he knew about the cheating earlier and failed to act.
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Volkswagen said the prosecutors have offered “no new facts or information” and has said before that it has met its disclosure obligations.
When he resigned, Winterkorn said he was standing down “in the interests of the company even though I am not aware of any wrong doing on my part”.
The German prosecutor’s office in Braunschweig said that the investigation focused on “sufficient real signs” that Volkswagen had not alerted investors as soon as they were aware of the possible financial damage of the emissions manipulation. Germany’s financial watchdog, the Federal Financial Supervisory Authority, requested the probe, prosecutors said.
Volkswagen issued a statement that suggested there is nothing new in the latest developments.
“Today’s press release from the Braunschweig public prosecution service does not cite any new facts or information on any serious breaches of duty by the members of the Board of Management now accused.”
In March there were reports that Winterkorn was alerted to US diesel emissions tests problems in 2014, but that the significance of the alert may have been missed at the time.
