U.S. SEC sues Volkswagen over emissions cheating

Credit: Reuters Studio
Published on March 15, 2019 - Duration: 01:14s

U.S. SEC sues Volkswagen over emissions cheating

The U.S. SEC is suing Volkswagen over the emissions cheating scandal, saying the German automaker should have been more open with investors about the scale of the scandal.

Julian Satterthwaite reports.


U.S. SEC sues Volkswagen over emissions cheating

Volkswagen is being sued by the U.S. Securities and Exchange Commission.

Regulators say the automaker should have told them earlier about the scale of its emissions cheating scandal.

VW was caught using illegal software to cheat U.S. pollution tests in 2015.

The ensuing scandal has so far cost it nearly $33 billion in fines and other measures.

In its suit, the SEC focuses on VW bonds issued in 2014 and 2015.

It says the firm sold $13 billion in debt at a time when it knew it was cheating on U.S. tests.

The SEC says VW repeatedly lied to investors, consumers, and regulators as part of issuing the bonds.

In a statement the German firm called the accusations "legally and factually flawed." It says it did not have to inform investors about the diesel cheating as it then had no idea the scandal would prove so costly.

Documents seen in a similar German case reveal VW thought the emissions issue could be fixed with a quick software patch.

It estimated the potential financial impact at around $170 million.

The real cost about 200 times higher, and counting.

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