Volkswagen engineers charged with insider trading tied to Rivian joint venture

Summary

The U.S. Department of Justice has charged two Volkswagen engineers with securities fraud for an alleged insider-trading scheme connected to the German automaker’s joint venture with Rivian. The indictment, unsealed Friday by the U.S. District Attorney for the Southern District of New York, alleges that Michael Stamp and Marcus Plank made more than $300,000 by using confidential insider information. Stamp and Plank allegedly bought Rivian stock and options after learning that the EV maker and Volkswagen planned to form a joint venture — internally codenamed “Project Climb” — but before the companies made any public announcements. Rivian and Volkswagen announced plans for the joint venture on June 25, 2024, which would focus on developing electric vehicle architecture and software. Volkswagen initially committed to invest $5 billion in Rivian, with the capital to be released as the companies achieve certain milestones. The joint venture has since grown to $5.8 billion, and Volkswagen is now Rivian’s largest shareholder. Rivian’s stock price rose 23% following the initial announcement in June. Stamp and Plank then allegedly sold their Rivian positions, with Stamp realized about $250,000 in profits, Plank realizing about $50,000, and Plank’s close family member realizing about $12,000, as detailed in the indictment. “Michael Stamp and Marcus Plank’s alleged exploitation of their employer’s confidential information allowed them to make more than $300,000 in illegal profits,” U.S. Attorney Jay Clayton said in a statement Friday. “When people misuse confidential information for their own financial gain, they undermine the principles that allow our markets to function fairly and efficiently. Insider trading is a crime that New Yorkers want pursued with vigor. Its effects ripple through the financial system, harming ordinary investors and eroding public confidence. Today’s charges underscore the commitment of this Office and our law enforcement partners to protecting the in...