The VW Group has agreed to pay the sum of 9 million euros ($9.9 million) so that a German court would end legal proceedings against CEO Herbert Diess and supervisory board chairman Hans Dieter Poetsch.
Both stood accused of holding back crucial market information from investors regarding rigged emissions tests, as reported by Autonews Europe.
Stock market manipulation charges against the two execs were heard in a Brunswick court, in VW’s home state of Lower Saxony, with the company saying in a statement yesterday that while it believes the charges were unfounded, “it was in the automaker’s interest that the proceedings be terminated.”
The German carmaker also said that neither Diess nor Poetsch violated any laws or their fiduciary duties toward VW, which is why the fine (which amounts to 4.5 million euros per each executive) will be paid by the company and not the former defendants.
Back in 2015 when VW Group admitted to using illegal software to cheat U.S. diesel engine tests, Poetsch was the company’s finance chief while Diess was head of the VW brand. In the years since, the scandal regarding engine control devices that masked excessive nitrogen oxide emissions has cost VW more than 30 billion euros ($32.8 billion) in damages and regulatory fines, mainly in the United States.
Dieselgate ultimately led to a crisis in confidence for the entire automotive industry, especially since similar defeat devices were found to be used by other car companies as well.
After paying this nearly $10 million fine, the charges against the two execs have essentially been dropped.