German prosecutors charge current VW chief, chairman in emissions scandal
The duo are accused of failing to disclose financial risks in a timely manner.
German prosecutors have levied charges against current Volkswagen chief executive Herbert Diess and chairman Hans Dieter Poetsch, expanding the legal fallout over the diesel emissions scandal.
Authorities claim the duo failed in their duties to disclose the financial disks of the emissions investigation to investors in a timely manner.
The lengthy indictment also includes new charges against former CEO Martin Winterkorn, the executive at the center of the fiasco as it came to light in 2015 and led to his ouster.
Volkswagen issued a statement noting its "respect for the public prosecutor's office's work" but disagrees with the findings, arguing that its own internal investigation did "not see that the capital market was deliberately not informed."
The company says the collapse of its share price was due to the unexpected announcement of allegations from US authorities, an event that was not foreseen by the automaker's board. US law firm Kirkland & Ellis advised the company that US authorities would likely wait to publish the notice of violation until a settlement had been worked out.
Volkswagen consequently has no plans to oust Diess or Poetsch despite the charges.