VW engineers charged with Rivian insider trading

Two former Volkswagen engineers, Michael and Marcus Plank, were arrested and charged by the U.S. Department of Justice with conspiracy and securities fraud for allegedly insider trading on confidential knowledge of Volkswagen's joint venture with TI Fluid Systems. The pair allegedly purchased Rivian stock and options before the deal was publicly announced on June 25, 2024, making over $300,000 in illegal profits. Rivian's stock rose 23% on the announcement. The indictment includes evidence that the defendants were aware of the illegality, such as searching for 'statute of limitations insider trading' before the announcement. The case is being prosecuted in the Southern District of New York and assigned to Judge Katherine Polk Failla. The joint venture, initially $5 billion and later expanded to $5.8 billion, focuses on electric vehicle software and architecture, making Volkswagen Rivian's largest shareholder. The charges do not implicate the companies themselves.