Volkswagen may have thought that they were getting clear of the Dieselgate scandal. After all, they had reached settlement agreements with many of the owners of the affected vehicles and with the billions of dollars in fines levied against them by the U.S. Environmental Protection Agency. Car Buzz reports that the automaker is facing another lawsuit from the U.S. Government, this time for fraud.
Back in 2015, the German automaker was busted with having installed emissions cheating software into its vehicles. The software would recognize when the vehicle was hooked up to an emissions testing machine and would kick in, causing the car to put out fewer toxic emissions. However, once on the road, the vehicles would kick out more pollutants than the EPA allows.
The Securities and Exchange Commission (SEC) is suing the automaker and its former CEO Martin Winterkorn, alleging that the company perpetrated a “massive fraud” on investors.
The suit alleges “from April 2014 to May 2015, VW issued over $13 billion in bonds and asset-back securities” while at the same time, company executives were aware that more than 500,000 vehicles in the U.S. exceeded legal vehicle emission limits. They also allege that the company made misleading statements to investors regarding the quality of their vehicles.
At the time of the decades-long emissions scandal, Martin Winterkorn was the CEO of Volkswagen, hence his being named in the lawsuit.
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