US sues Volkswagen over massive fraud

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The US is suing Volkswagen over the diesel emissions scandal accusing the German carmaker of “massive fraud”. Volkswagen’s former chief executive Martin Winterkorn is also being sued.

The Securities and Exchange Commission (SEC) claims the firm misled investors by issuing billions of dollars worth of bonds and securities, without disclosing that it had cheated emissions tests.

The SEC said that as a result, Volkswagen “reaped hundreds of millions of dollars in benefit by issuing the securities at more attractive rates for the company”.

The company said it would contest the SEC lawsuit vigorously.

VW first admitted in September 2015 that it had used illegal software to cheat US emissions tests.


Via DW

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