Due to the diesel emissions issue, Volkswagen has once again come under scrutiny. Three top Volkswagen officials are accused by German prosecutors of failing to notify investors in a timely manner about the financial consequences the business suffered as a result of the scandal.
Ex-CEO Martin Winterkorn, Herbert Diess, and Hans Dieter Potsch have all been under investigation by prosecutors. The German automaker’s lawyers announced that Diess would stay as the company’s CEO despite the charges.
Volkswagen revealed in 2015 that it had used illegal cheating devices to rig emissions tests.
In a statement, VW said it conducted an extensive investigation and sought the advice of both internal and external legal experts in order to get to its conclusion. The four-year investigation concluded that the accusations are without merit.
By the time the current CEO started in July 2015, he had no awareness of the extent of the problem, according to Diess’s counsel. According to the attorneys for the other two executives, there is no basis to hold them responsible for the scandal.
Three Volkswagen executives, including CEO Matthias Winterkorn, have been charged with fraud. The company’s executives have been indicted for the second time since the corruption scandal surfaced in 2015.
In September of that year, Volkswagen revealed that it had cheated pollution tests in about 600,000 of its vehicles sold in the US. The “defeat device” was installed in millions of cars made between 2009 and 2015 and sold around the world. Then Martin Winterkorn resigned as CEO following the controversy. In 2015, Weiss joined VW and was promoted to CEO.
As a result of the diesel emissions manipulations, Winterkorn should have alerted authorities and automobile owners to the problem, the prosecution argued. A month previously, the US Securities and Exchange Commission had filed a lawsuit against the business and its former CEO, Winterkorn. Volkswagen was accused by the SEC of issuing bonds worth billions of dollars and defrauding investors of their money.