Volkswagen chairman under investigation in Germany
Volkswagen Group's emissions scandal is threatening to ensnare its chairman and former chief financial officer over allegations that the company failed to properly disclose details to investors.
VW Chairman Hans Dieter Pötsch is under investigation by the prosecutor's office in the German town of Brunswick, about half an hour from the company's global headquarters in Wolfsburg, the automaker confirmed early Sunday.
The prosecutors are probing "alleged market manipulation," VW said. Former CEO Martin Winterkorn is also a target of the investigation, prosecutors said in June.
"Based on careful examination by internal and external legal experts, the company reaffirms its belief that the Volkswagen Board of Management duly fulfilled its disclosure obligation under German capital markets law," VW said in a statement.
The investigation is probing whether VW promptly revealed the full financial risks stemming from its emissions scandal when the issue arose in September 2015. Shareholders are typically entitled to receive adequately comprehensive reports on major financial risks to their investments.
The company is now on the hook for some $20 billion in fines, settlements and other costs stemming from the scandal, and the bill could continue to rise.
The automaker has admitted to rigging about 11 million diesel vehicles worldwide with software to cheat emissions regulations. A federal judge last month approved the company's nearly $15 billion settlement with U.S. consumers and regulators over the matter, giving diesel owners an option to choose between buybacks or payouts and an eventual free repair.
But the company is still facing criminal investigations in the U.S. and Germany and other investigations that could trigger additional financial penalties.
The investigation into Pötsch revolves around his time as chief financial officer of VW, the automaker said. He was later promoted to chairman amid a shakeup.
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