Labaton Sucharow LLP Files Class Action Lawsuit on Behalf of Bond Investors in Volkswagen AG and Volkswagen America

NEW YORK, June 22, 2016 (GLOBE NEWSWIRE) -- Labaton Sucharow LLP (“Labaton Sucharow”) filed a securities class action lawsuit on June 20, 2016 on behalf of its client Boston Retirement System (“BRS”) against Volkswagen AG, its wholly owned subsidiary Volkswagen Group of America, Inc., its further subsidiary Volkswagen Group of America Finance, Inc. (together, “Volkswagen”), and certain senior executives (collectively “Defendants”). The action, which is captioned BRS v. Volkswagen, No. 16-cv-3435 (N.D. Cal.), asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”), and U.S. Securities and Exchange Commission (“SEC”) Rule 10b-5 promulgated thereunder, on behalf of all persons or entities who purchased or otherwise acquired U.S.-issued debt securities of Volkswagen between May 23, 2014 and September 22, 2015, inclusive (the “Class Period”). The securities at issue (the “Offerings”) are listed in the chart below:

The Complaint alleges that during the Class Period, Defendants made false and misleading statements and concealed a scheme to defraud investors in the Offerings regarding the Company’s operations, its business and finances, and its outlook. Specifically, Defendants caused its Offerings to trade at artificially inflated prices by failing to disclose that Volkswagen utilized a “defeat device” in certain of its diesel cars that allowed such cars to temporarily reduce emissions during testing, while achieving higher performance and fuel economy, as well as discharging dramatically higher emissions, when testing was not being conducted. The Complaint alleges that Defendants made misrepresentations and omissions in its public statements as well as in its offering memoranda in connection with the issuance of over $8 billion of Offerings on May 23, 2014, November 20, 2014, and May 22, 2015. Through this series of revelations and Volkswagen’s admissions, the Offerings have declined from an average of 99.854% par value on September 18, 2015 to an average of 95.624% par value on September 22, 2015, representing a decline of over $300 million.

If you purchased or acquired Volkswagen Offerings during the Class Period, you are a member of the Class and may be able to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must be filed with the U.S. District Court for the Northern District of California no later than August 22, 2016. A lead plaintiff is a court-appointed representative for the Class. You do not need to seek appointment as lead plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member. You may retain counsel of your choice to represent you in this action.

If you have any questions about participation in this lawsuit, or concerns about potential recovery for individual bond issuances you may have purchased, you may contact Michael H. Rogers, Esq. of Labaton Sucharow, at (212) 907-0814, or via email at mrogers@labaton.com. You can view a copy of the complaint online at http://www.labaton.com/en/cases/Volkswagen-Bondholders-Class-Action-Boston-Retirement-System-v-Volkswagen.cfm.

BRS is represented by Labaton Sucharow, which represents many of the largest pension funds in the United States and internationally, with collective assets under management of more than $2 trillion. Labaton Sucharow’s litigation reputation is built on its half century of securities litigation experience, 60 full-time attorneys, and in-house team of investigators, financial analysts, and forensic accountants. Labaton Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, NY and Wilmington, DE. More information about Labaton Sucharow is available at www.labaton.com.