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Volkswagen AG Class Action Lawsuit

Company Name
Volkswagen AG
Stock Symbol
VWAGY
Class Period
March 29, 2021 to March 30, 2021
Motion Deadline
June 29, 2021
Court
Central District of California
42 days left to seek lead plaintiff status

Case Summary

The Volkswagen AG class action lawsuit charges Volkswagen AG and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent persons or entities who purchased or otherwise acquired publicly traded Volkswagen securities between March 29, 2021 and March 30, 2021, inclusive (the “Class Period”).  The Volkswagen class action lawsuit was commenced on April 30, 2021 in the Central District of California and is captioned Montag v. Volkswagen AG, No. 21-cv-03678.

Volkswagen Group of America, Inc. (“Volkswagen”) is a wholly-owned subsidiary of Volkswagen AG.  On March 29, 2021, Volkswagen published a “draft” of a press release announcing its purported name change to “Voltswagen” on its website for a short time.  In response to the name change press release, multiple news agencies reported that they confirmed with Volkswagen insiders that the name change was real.  As CNBC reported, “Volkswagen accidentally posted a press release on its website a month early on Monday announcing a new name for its U.S. operations, Voltswagen of America, emphasizing the German automaker’s electric vehicle efforts.”  The price of Volkswagen AG’s American Depository Receipts (“ADRs”) rose more than 8% from March 29 to March 30, 2021.

The Volkswagen class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) “Voltswagen” was never going to be used by Volkswagen, Volkswagen AG, or on any relevant vehicle; (ii) Volkswagen AG, Volkswagen, and their spokespeople purposefully misled reporters regarding the now-purported “joke” and/or “promotion”; and (iii) as a result, defendants’ public statements and statements to journalists were materially false and/or misleading at all relevant times.

Late on March 30, 2021, The Wall Street Journal published a “WSJ News Exclusive” which was entitled “No, Volkswagen Isn’t Rebranding Itself Voltswagen: German car maker says announcement by its U.S. operation was supposed to be an April Fools’ gag” and noting that “[i]nvestors have been clamoring for shares of companies involved in electric vehicles and have recently been pouring money into the stocks of established car makers with solid EV plans.”  As ABC News also reported: “‘The Associated Press was repeatedly assured by Volkswagen that its U.S. subsidiary planned a name change, and reported that information, which we now know to be false,’ company spokeswoman Lauren Easton said.”  The ABC News article added that “[t]he USA Today reporter who was initially lied to was more blunt.  ‘This was not a joke,’ reporter Nathan Bomey wrote on Twitter.  ‘It was deception.  In case you haven’t noticed, we have a misinformation problem in this country.  Now you’re part of it.  Why should anyone trust you again?’” On this news, the price of Volkswagen AG’s ADRs fell more than 5% over the next two full trading days, damaging investors.

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Volkswagen AG securities during the Class Period to seek appointment as lead plaintiff in the Volkswagen class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Volkswagen class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Volkswagen class action lawsuit.  An investor’s ability to share in any potential future recovery of the Volkswagen action lawsuit is not dependent upon serving as lead plaintiff.  If you wish to serve as lead plaintiff of the Volkswagen class action lawsuit or have questions concerning your rights regarding the Volkswagen class action lawsuit, please provide your information here or contact counsel, Juan Carlos Sanchez of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at jsanchez@rgrdlaw.com.  Lead plaintiff motions for the Volkswagen class action lawsuit must be filed with the court no later than June 29, 2021.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For eight consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

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