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Violation Tracker Individual Record

Company: Volkswagen AG
Current Parent Company: Volkswagen
Parent at the Time of the Penalty Announcement:  subscribe to see this data field
Penalty: $48,750,000
Year: 2024
Date: April 5, 2024
Offense Group: financial offenses
Primary Offense: investor protection violation
Mega-Scandal: Emissions Cheating
Violation Description: The Securities and Exchange Commission obtained final judgment by consent against defendant Volkswagen Group of America Finance, LLC (VWGOAF), which the SEC had charged in 2019 with making false and misleading statements in connection with its 2014 and 2015 offerings of billions of dollars of corporate bonds. The SEC's complaint, filed on March 14, 2019, alleged, among other things, that from April 2014 to May 2015, VWGOAF issued more than $8 billion in bonds in the U.S. markets at a time when senior Volkswagen executives knew that more than 500,000 of their vehicles in the United States grossly exceeded legal vehicle emissions limits, exposing the company to massive financial and reputational harm. The complaint alleges that VWGOAF made false and misleading statements to investors and underwriters about vehicle quality, environmental compliance, and Volkswagen's financial standing. VWGOAF is the financing subsidiary of Volkswagen Group of America, Inc. VWGOAF, without admitting or denying the SEC's allegations, consented to the entry of a final judgment permanently enjoining it from violations of the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The final judgment orders VWGOAF to pay $34.35 million in disgorgement and $14.4 million in prejudgment interest. Following the entry of the final judgment, the SEC dismissed its outstanding claims against VWGOAF's ultimate parent company, Volkswagen AG.
Level of Government: federal
Action Type: agency action
Agency: Securities and Exchange Commission
Civil or Criminal Case: civil
HQ Country of Current Parent: Germany
Ownership Structure of Current Parent: publicly traded
Major Industry of Current Parent: motor vehicles
Specific Industry of Current Parent: motor vehicles
Source of Data: (click here)
Source Notes: If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Current parent company note: Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.