While a federal judge in Virginia indicated that he wasn’t completely convinced that Volkswagen’s allegedly false announcement regarding a name change to “Voltswagen” to remain competitive in the electric vehicle industry was only an “April Fool’s joke gone wrong,” the judge dismissed Securities Exchange violations against the auto manufacturer based on a 2011 U.S. Supreme Court ruling.
In the present case, the lead plaintiff, Laszlo Rozasavolgyi, alleged that Volkswagen Group of America (VWGoA), as well as the company’s chief executive officer and president, Scott Keogh, and acting head of communications, Mark Gillies, collectively violated § 10(b) of the Securities and Exchange Act of 1934 and SEC Rule 10b-5. The complaint also claims that Volkswagen Aktiengesellschaft (Volkswagen AG) and the individual defendants violated § 20(a) of the Exchange Act as control persons of VWGoA and are directly liable for the alleged actions taken by VWGoA in violation of § 10(b) and Rule 10(b)-5, according to the opinion.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
