Volkswagen Engineers Charged with Insider Trading Tied to Rivian Joint Venture
Two Volkswagen engineers have been charged with securities fraud in connection with an alleged insider trading scheme. The indictment claims they used confidential information to purchase Rivian stock before a joint venture announcement.
The U.S. Department of Justice has charged two Volkswagen engineers with securities fraud for an alleged insider trading scheme tied to the German automaker's joint venture with Rivian. The indictment was unsealed on Friday.
The two engineers, Michael Stamp and Marcus Plank, are accused of making over $300,000 by using confidential insider information. Prosecutors allege they bought Rivian stock and options after learning about the planned joint venture, internally codenamed "Project Climb," but before any public announcements were made.
Rivian and Volkswagen announced their joint venture plans on June 25, 2024. The venture is focused on developing electric vehicle architecture and software. Volkswagen initially committed to invest $5 billion in Rivian, with funds to be released as milestones are met. The joint venture's value has since increased to $5.8 billion.