Volkswagen investigates stock market fraud after last month’s name change saga – report


Volkswagen’s stock rose more than 10% following the false claim it was renaming “ Voltswagen ” in the United States.

The United States Securities and Exchange Commission (SEC) is investigating Volkswagen for stock market fraud after the controversial “ prank ” of last month’s name change, according to a new report from Reuters.

On March 29, 2021, the German automotive conglomerate announced via an official press release that it was changing its name to Voltswagen in the United States, as part of a broader offering highlighting the switch to electrification.

Representatives confirmed this bizarre move and explicitly told media (including Reuters, The Wall Street Journal, CNBC, The Independent and USA today), the announcement was not a marketing stunt, going so far as to provide fake quotes from US CEO Scott Keogh.

A spokesperson for the brand in Australia has repeatedly assured Car board – and other local editors – the name change was underway across the pond, but noted: “[The decision to rebrand] is purely an American gambit. “

As a result of the “news”, Volkswagen’s share price climbed more than 10% from € 218.85 (AU $ 340) to € 246.55 (AU $ 390). However, since the hoax rumored, the shares have fallen back to € 216.70 (AU $ 335).

Car board contacted the US Security Exchange Commission for comment when the story broke last month. A spokesperson at the time said: “[We] have no statements or comments at this time. “

The same spokesperson was contacted for further information. This story will be updated when more information becomes available.

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