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A company spokesperson stated that Volkswagen has accepted the fine.
Volkswagen AG shares experienced a significant event. The German financial regulator imposed a fine of 1.2 million euros (equivalent to $1.3 million) on the automaker, determining that it failed to disclose major market-sensitive information in a timely and compliant manner.
The regulator, known as BaFin, announced on Friday that Volkswagen AG's 2023 fiscal year earnings guidance substantially exceeded market expectations. For the operational conditions reflected in this guidance, the German car manufacturer should have issued an ad-hoc announcement to the financial markets immediately. However, the regulator stated that the company instead released this inside information in a regular press release.
BaFin noted that the requirement for companies to immediately publish such information is intended to prevent insiders from profiting in securities and other financial instrument trading based on informational advantages, while also ensuring investors are not misled when making investment decisions.
The regulator said in a statement: "A company's failure to publish inside information in the form of an ad-hoc announcement as soon as possible constitutes a violation of the Market Abuse Regulation." The fine was officially imposed on October 1.
A spokesperson for Volkswagen AG said the company accepts the fine; this penalty stems from a settlement agreement reached with BaFin to conclude the relevant investigation proceedings. The spokesperson stated: "BaFin's view is that certain circumstances mentioned in the press release should have been disclosed through an ad-hoc announcement." "Despite reaching this settlement, Volkswagen AG Group still maintains its own legal position: the company has fulfilled its information disclosure obligations, and the publication of the press release has fully informed all market participants."