Federal prosecutors announced today the arrest of two former engineers of Volkswagen AG on charges of insider trading tied to the automaker’s recently disclosed joint venture with Rivian Automotive Inc. The case centers on a $5 billion agreement between Volkswagen and Rivian, officials said.
The indictment filed against the two men, identified as Michael Stamp and Michael Plank, alleges that each used privileged information obtained through their roles at Volkswagen about discussions with Rivian. Prosecutors say that both individuals executed trades that benefited financially after Volkswagen and Rivian publicly announced the joint venture on June 26, 2024.
According to the indictment, Michael Stamp realized $250,000 in proceeds when Rivian’s share price rose 23% on the announcement. Michael Plank is accused of earning $50,000 from his trades. The indictment further alleges that Plank disclosed the confidential information to a close family member, who in turn earned $12,000.
Prosecutors pointed to internet search activity near the time of the joint venture announcement as part of the evidence. The indictment states that Stamp searched for the phrase "statute of limitations insider trading" eight days before Volkswagen and Rivian made the deal public. It also alleges that the family member who received information from Plank searched in German for "how is insider trading prosecuted?" after the announcement.
The joint venture itself, announced on June 26, 2024, involved Volkswagen providing financial support to Rivian. The announcement came at a time when electric vehicle manufacturers were reported to be reassessing strategies in the face of a slowing market, according to the indictment’s contextual summary of the deal.
The charges brought by federal prosecutors make specific claims about the timing of trades, the amounts gained by the individuals named, and internet searches that prosecutors say indicate awareness of the potential illegality. The case will proceed through the federal court system, beginning with the charges laid out in the indictment.
No additional outcomes, rulings, or statements by the defendants or the companies involved are described in the indictment as presented in the filing referenced by prosecutors.