The U.S. Department of Justice has charged two Volkswagen engineers with securities fraud for an alleged insider-trading scheme related to the German automaker’s joint venture with Rivian.
According to the indictment, Michael Stamp and Marcus Plank made over $300,000 by buying Rivian stock and options after learning about a planned joint venture but before any public announcements were made. The joint venture, codenamed “Project Climb,” 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 milestones are achieved. The joint venture has expanded to $5.8 billion, making Volkswagen Rivian’s largest shareholder. Following the announcement in June 2024, Rivian’s stock price rose by 23%. Stamp and Plank then sold their positions, realizing significant profits.
U.S. Attorney Jay Clayton stated that these actions undermine market fairness and efficiency. Both engineers were arrested on Friday and will appear before U.S. District Court for the Northern District of California. If convicted, they face up to 25 years in prison.
