Volkswagen Will Pay $48.8 Million to Resolve Auto Emissions Case — Update

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 Friday.

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

"Volkswagen values a constructive relationship with regulators in all of our markets as we work to build the future of sustainable mobility," a company spokesperson said.

The SEC alleged that from April 2014 to May 2015, the Volkswagen finance unit 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.

Winterkorn tendered his resignation to the supervisory board in September 2015 and said he would accept responsibility for the "irregularities that have been found in diesel engines."

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 18:52 ET (22:52 GMT)

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