The U.S. Securities and Exchange Commission is filing a case against Volkswagen and their former Chief Executive Martin Winterkorn. They are doing so over the scandal related to diesel emissions of the German automaker. They have been alleged of a massive fraud on US investors. Volkswagen was caught using illegal software to cheat on the United States pollution tests back in 2015. This had triggered a backlash from all over the world against diesel. It has until now cost 29 billion euros. There was the argument put forward from both the regulators as well as the investors. They feel that Volkswagen should have provided them with information related to the scope of the scandal.
On the other hand, Volkswagen said that there was no clarity on their part that they would face fines and penalties of up to billions of dollars. The Securities and Exchange Commission talked about the period from April 2014 to May 2015 in their civil complaint on Thursday. The company had issued in excess of $13 billion in bonds as well as securities backed by assets in American markets. It was at a time when senior officials were aware of the details. They knew that more than 500,000 US diesel vehicles had grossly exceeded the limits of legal vehicle emissions. Volkswagen had secured hundreds of millions of dollars through issuing securities at increasingly attractive rates for the organization.
The management of the organization had struck a deal with the US regulators. This was a process, which would allow overall costs to get controlled, keeping in mind the business activities of Volkswagen Group. The company had the belief that they would be able to correct the polluting vehicles through a software update and analyse the possible financial risk to be nearly 150 million Euros.
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