Volkswagen engineers charged with insider trading tied to Rivian joint venture

AI Summary

The U.S. Department of Justice has charged two Volkswagen engineers, Michael Stamp and Marcus Plank, with securities fraud for insider trading connected to Volkswagen's joint venture with Rivian. The pair allegedly purchased Rivian stock and options after learning about the planned partnership, internally codenamed "Project Climb," before any public announcement. When Rivian's stock rose 23% following the June 2024 announcement, they sold their positions, netting over $300,000 in combined profits. Evidence suggesting the two knew their actions were illegal includes internet searches about insider trading laws made days before the announcement. Both men were arrested in San Jose and face up to 25 years in prison if convicted.