VW Sued by SEC for Misleading Bondholders on Diesel Cheating

U.S. regulator also accuses ex-CEO Winterkorn of wrongdoing
Company says SEC complaint is ‘legally and factually flawed’

VW said it will contest the SEC’s complaint "vigorously.” Bloomberg’s Elisabeth Behrmann reports.(Source: Bloomberg)

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By Peter Blumberg and Karin Matussek

March 15, 2019 at 4:17 AM UTC

Updated on

March 15, 2019 at 1:16 PM UTC

This article is for subscribers only.

Volkswagen AG and its former chief executive officer were sued by the U.S. Securities and Exchange Commission over claims they failed to disclose to investors that diesel vehicles violated emission standards, the latest twist in a software cheating scandal that has already cost the company more than $30 billion.

The German automaker sold billions of dollars of corporate bonds and asset-backed securities in the U.S. from 2010 to 2015 while concealing its emissions-cheating scheme, according to the complaint filed by the regulator late Thursday in San Francisco federal court. The case, also filed against ex-CEO Martin Winterkorn, could give fresh impetus to similar efforts for redress from European investors.