Volkswagen is facing emissions scandal
Volkswagen is currently facing constantly growing legal pressure, caused by its recent cheating with an engine emissions test.
The US Justice Department has just sent the German carmaker a subpoena following a corresponding bank fraud law, thus contributing to this terrible scandal.
The given intricate law enables them to seek fraud, which might have taken place ten years. Sure, it might cause more painful financial sanctions against the well-known car producer.
Meanwhile, Braunschweig’s prosecutors told that the overall number of suspects they’re currently investigating has surged 17 from 6. Additionally, French prosecutors have also joined this case.
Michael Punzet, DZ Bank analyst stressed the given subpoena along with recent news that German prosecutors had already extended their test, thus making investors worry.
Considering choking financial burdens because of extended investigations, investors expect a bigger dividend cut.
In January, the US Justice Department sued VW for about $46 billion for violating American environmental laws. Currently, settlement talks keep going, so fixes for cars and buyback offers are expected.