Volkswagen Will Pay $48.8 Million to Resolve Auto Emissions Case

By Sabela Ojea

Volkswagen's U.S. financing subsidiary agreed to pay $48.8 million as part of a final judgement that resolved a Securities and Exchange Commission case against the German auto maker.

Volkswagen Group of America Finance consented to the entry of a final judgement permanently enjoining it from alleged antifraud violations. VWGOAF didn't admit or deny the allegations, the SEC said on Friday.

Following entry of the final judgment, the SEC also dismissed its outstanding claims against Volkswagen's former Chief Executive Martin Winterkorn.

The SEC alleged that from April 2014 to May 2015 VWGOAF issued more than $8 billion in bonds, even though senior executives knew that more than half a million of their vehicles in the U.S. exceeded legal emission limits.

The complaint filed in March 2019 alleged that VWGOAF made false and misleading statements to investors and underwriters about vehicle quality, environmental compliance, and the company's finances.

Two years earlier, Volkswagen pleaded guilty to criminal charges for rigging diesel-powered vehicles to cheat on government emissions tests.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

April 05, 2024 17:25 ET (21:25 GMT)

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