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Volkswagen Engineers Charged With Insider Trading in Rivian Joint Venture Case
Two Volkswagen engineers have been charged with securities fraud for allegedly trading on confidential information about the automaker's joint venture with Rivian.
The U.S. Department of Justice unsealed an indictment Friday charging Volkswagen engineers Michael Stamp and Marcus Plank with insider trading. The charges stem from a scheme that allegedly generated more than $300,000 in illegal profits.
According to the indictment filed in the Southern District of New York, Stamp and Plank learned of the planned joint venture—codenamed "Project Climb"—before any public announcement. They then purchased Rivian stock and options based on that inside information.
Rivian and Volkswagen publicly disclosed their joint venture on June 25, 2024, focusing on electric vehicle architecture and software. Following the announcement, Rivian's share price jumped 23%.
The engineers allegedly sold their positions after the price surge. Stamp realized approximately $250,000 in profits, Plank about $50,000, and a close family member of Plank around $12,000.
Volkswagen initially committed $5 billion to the venture, which has since grown to $5.8 billion. The German automaker is now Rivian's largest shareholder.