Two Volkswagen engineers have been accused of insider trading in relation to a joint venture with Rivian.
**TL;DR**: DOJ charges two VW engineers with insider trading for purchasing Rivian stock prior to joint venture announcement.
On Friday, federal prosecutors arrested two Volkswagen engineers in San Jose, California, charging them with insider trading related to their purchase of Rivian stock before the public announcement of VW's multibillion-dollar joint venture with the electric vehicle company. The engineers, Michael Stamp and Marcus Plank, who work at VW’s US operations, each face one count of federal securities fraud, potentially leading to a maximum sentence of 25 years in prison. The indictment, filed by the US Attorney’s office for the Southern District of New York, claims that the two men leveraged confidential information regarding the partnership, internally named Project Climb, to buy Rivian shares in the weeks leading up to the announcement on June 25, 2024.
According to the indictment, Stamp reportedly made around $250,000 in profits, while Plank gained approximately $50,000. Additionally, a relative of Plank also purchased Rivian shares, earning about $12,000, as stated by prosecutors. Rivian's stock surged by 23 percent on the day the joint venture was disclosed, benefiting anyone who had acquired shares beforehand.
The indictment reveals indications that the defendants understood the legal implications of their actions. Prosecution claims that Stamp searched for information on “statute of limitations insider trading” on Google eight days prior to the joint venture announcement, and a family member of Plank searched for the same phrase in German.
This joint venture, central to the case, has evolved into a significant collaboration in the automotive sector, initially valued at $5 billion and now nearing $6 billion, aimed at developing software-defined vehicle architecture for VW's upcoming cars. Meanwhile, Rivian is advancing into the mass market with its R2 SUV. In May, VW surpassed Amazon to become Rivian's largest shareholder, acquiring a nearly 16 percent stake through a $1 billion share purchase linked to a software milestone.
The case is being prosecuted by the same SDNY office that charged a Google engineer with insider trading involving Polymarket in May, reflecting a wider federal initiative to target corporate insiders who misuse non-public information in the tech and automotive industries. Both individuals were arrested in San Jose and are set to appear before Judge Katherine Polk Failla in the Southern District of New York. The case was publicized by US Attorney Jay Clayton, who has prioritized enforcement against insider trading in his office.
Other articles
Two Volkswagen engineers have been accused of insider trading in relation to a joint venture with Rivian.
Federal prosecutors have indicted two VW engineers for purchasing Rivian stock prior to the announcement of their joint venture, resulting in profits exceeding $300,000.
