Top executives of VW charged with market manipulation

With regards to a diesel emissions scandal, three former and current Volkswagen executives have been held for market manipulation.

In 2015, the firm had admitted to the accusation of cheat on emissions tests and on using illegal software. VW however claimed that it was confident the allegations would prove to be baseless.

Furthermore, sources allege, chief executive Herbert Diess, chairman Hans Dieter Pötsch and ex-boss Martin Winterkorn did not inform investors in advance about the financial fallout.

Based on a statement by the company’s lawyers, Diess will continue to remain the company’s chief executive. “The company has meticulously investigated this matter with the help of internal and external legal experts for almost four years. The result is clear: the allegations are groundless,” said the company sources.

Moreover, lawyers for Winterkorn and Pötsch also determined that the two men were blameless. Diess’s lawyer also confirmed that the present chief executive had not taken to office until July 2015 and hence could not have an idea about the intensity of the scandal.

The Volkswagen scandal surfaced in September 2015. The company had then admitted that 600,000 cars were sold in the US with “defeat devices” which were also designed to avoid emissions tests. This followed the resignation of the then chief executive, Martin Winterkorn. Diess took over after this epsiode.

This incidence marks the second allegation in Germany by prosecutors with regards to the diesel scandal. Winterkorn along with three other VW managers were accused for fraud in April.

Winterkorn was accused with “particularly serious” fraud, in addition to a breach of competition laws. Furthermore, US Securities and Exchange Commission (SEC) said it had misled the investors by issuing billions of dollars, and had not disclosed that it had cheated emission tests.