BERLIN — German prosecutors are investigating former Volkswagen CEO Martin Winterkorn and another unnamed executive over allegations they didn't inform investors soon enough about the company's scandal over cars rigged to cheat on U.S. diesel emissions tests.
The Braunschweig prosecutor's spokesman, Matthias Diekman, said in a statement Monday that the probe was opened at the behest of Germany's Federal Financial Supervisory Authority, the country's financial watchdog.
German stock market law requires publicly traded companies to alert investors as soon as they have unforeseen developments that could affect a decision to buy or sell the stock. Prosecutors said that Volkswagen only made that notification Sept. 22 and that there was evidence that the disclosure obligation should have been fulfilled earlier.
Volkswagen said it had the issue reviewed by outside lawyers who found "no clear or serious violations of duty" and that the prosecutor's statement contained "no new facts or findings over possible violations" by the two executives. The company had already said in response to an investor lawsuit that it met its disclosure obligation.
Read Tuesday's Arkansas Democrat-Gazette for full details.