Volkswagen's US finance unit has agreed to pay $48.75 million to settle a diesel emissions scandal case with the Securities and Exchange Commission (SEC).
The settlement stems from allegations that Volkswagen Credit, Inc. misled bond investors about the financial impact of the company's diesel emissions scandal. The SEC accused the finance unit of issuing more than $13 billion in bonds and asset-backed securities in US markets while failing to disclose the potential financial risks associated with the scandal.
According to the SEC, Volkswagen Credit, Inc. failed to inform investors about the significant financial impact the emissions scandal could have on the company, including potential regulatory fines, penalties, and vehicle recalls. The SEC also alleged that the finance unit made false and misleading statements in offering documents related to the securities it issued.
As part of the settlement, Volkswagen Credit, Inc. neither admitted nor denied the SEC's allegations but agreed to pay $48.75 million in penalties. The finance unit also agreed to cease and desist from future violations of the antifraud provisions of the federal securities laws.
This settlement marks another chapter in Volkswagen's ongoing legal battles related to the diesel emissions scandal that came to light in 2015. The company has faced numerous lawsuits, regulatory investigations, and financial penalties in various jurisdictions around the world.
The SEC's enforcement action against Volkswagen's US finance unit serves as a reminder of the importance of transparency and accountability in financial disclosures. Companies are required to provide accurate and timely information to investors to enable them to make informed decisions about their investments.
