Daily Management Review

Volkswagen to pay €9M to dismiss case against two top managers


The German automobile group Volkswagen agreed to pay €9 million to dismiss a case against the head of the board of the automobile concern Herbert Diess and the chairman of the supervisory board, Hans Dieter Pötsch, according to Handelsblatt.

German prosecutors in Braunschweig charged Diess and Pötsch with manipulating the market last September. In addition, charges were brought against ex-Volkswagen head Martin Winterkorn. The prosecutor's office considered that Volkswagen executives deliberately too late informed the financial market about the costs associated with the so-called “diesel scandal” that the automaker would have to incur.

"The Volkswagen AG Supervisory Board welcomes the closure of the proceedings in the Braunschweig District Court," the car manufacturer said.

According to the publication, "the monetary penalty is €4.5 million for each of the two top managers." Thus, the automaker agreed to pay a total of €9 million. At the same time, the automaker itself does not consider the accusations made against Diess and Pötsch to be justified.

In accordance with German law on securities trading, boards of listed companies are required to inform of events that may affect the value of shares, for example, the occurrence of significant financial risks.

source: handelsblatt.com