German prosecutors are investigating former Volkswagen CEO Martin Winterkorn and an unnamed executive over the allegations that they didn't inform investors on time about the company's scandal over cheat on U.S. diesel emissions tests. Volkswagen said it had the issue reviewed by outside lawyers who found "no clear or serious violations of duty" and that the prosecutor's statement contained "no new facts or findings over possible violations" by the two executives.
In a statement, Volkswagen AG said, “The company's recommendation to the Annual General Meeting concerning formal approval of the actions of the Supervisory Board and Board of Management is based on information currently available from the comprehensive although not yet concluded investigation into the diesel matter by the independent investigator, U.S. law firm Jones Day. On this basis, law firm Gleiss Lutz carried out a comprehensive legal review, which has been confirmed by Professor Wulf Goette (retired chief justice at the German Federal Court of Justice).”
Further, they added, “The Board of Management similarly obtained the advice of law firm CMS Hasche Sigle. In both of these legal reviews, according to information currently available, no serious and manifest breaches of duty on the part of any serving or former members of the Board of Management have been established that would stand in the way of granting formal approval at this time. This is the basis for the recommendation concerning formal approval.”
As has been planned for some time, the Supervisory Board and the Board of Management will once again obtain legal advice from the aforementioned law firms prior to the Annual General Meeting concerning whether there is any new information to be taken into account with regard to formal approval of the actions of the members of the Board of Management and Supervisory Board for fiscal year 2015.
The brand said that the review showed no reason not to recommend that shareholders vote to approve management's work for 2015 at the annual meeting on Wednesday. They also added that Winterkorn was sent a memo on May 23, 2014, about emissions irregularities uncovered by an environmental group, but the company was not sure he saw it, and said that top officials discussed the matter on July 27, 2015.