TL;DR
DOJ charges two VW engineers with insider trading to buy Rivian shares before announcing joint venture
Federal prosecutors made the arrests Friday two Volkswagen engineers in San Jose, Calif., and accused them of insider trading to buy Rivian shares before VW’s multibillion-dollar joint venture with the electric car maker was announced. Michael Stamp and Marcus Plank, who both worked at VW’s US operations, each face federal securities fraud charges and face a maximum sentence of 25 years in prison. indictment, The filing, filed by the U.S. Attorney’s Office for the Southern District of New York, alleges that the two individuals used confidential information about the partnership, internally code-named Project Climb, to buy Rivian shares weeks before the deal was announced on June 25, 2024.
Stamp allegedly made about $250,000 from the trade, and Plank made about $50,000. A family member of Plank’s also bought Rivian stock and made about $12,000, prosecutors said. On the day the joint venture was announced, Rivian’s stock jumped 23 percent, rewarding anyone who bought shares early.
The indictment details that the defendants were aware of the legal risks. It is claimed that the brand is wanted”insider trading limitations periodAt Google eight days before the joint venture was announced, prosecutors said. A family member of Plank’s searched for the same phrase in German, the indictment said.
The joint venture at the heart of the case has since become one of the most consistent partnerships in the automotive industry. Originally valued at five billion dollars, it has expanded to nearly six billion dollars and is focused on developing software-defined vehicle architecture for VW’s next-generation vehicles. Rivian goes mass-market with its R2 SUV. VW has overtaken Amazon as Rivian’s largest shareholder It closed on a round of software after buying a billion-dollar stake in May for a nearly 16 percent stake.
💜 of EU technology
The latest rumblings from the EU tech scene, a story from our wise founder Boris and some questionable AI art. Free in your inbox every week. Register now!
The case is being prosecuted by the same SDNY office Google accused the engineer of insider trading in Polymarket in May, part of a broader federal push to prosecute corporate insiders who use nonpublic information in the technology and auto sectors. Both defendants were arrested in San Jose and are expected to appear before Judge Katherine Polk Fail in the Southern District of New York. The case was announced by U.S. Attorney Jay Clayton, who has made insider trading enforcement a priority for the office.
