LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Volkswagen AG (“Volkswagen” or the “Company”) (OTC: VWAGY) American depositary receipts (“ADRs”) between March 29, 2021 and March 30, 2021, inclusive (the “Class Period”). Volkswagen investors have until March 15, 2022 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On March 29, 2021, Volkswagen published a draft press release announcing its American subsidiaries’ supposed name change to “Voltswagen.” Media outlets reported that they confirmed with the Company that the name change was real. As reported by CNBC, “Volkswagen accidentally posted a press release on its website a month early on Monday announcing a new name for its U.S. operations, Voltswagen of America, emphasizing the German automaker’s electric vehicle efforts.” On this news, Volkswagen AG’s share price sharply rose.
On March 30, 2021, however, The Wall Street Journal published an article titled “No, Volkswagen Isn’t Rebranding Itself Voltswagen: German car maker says announcement by its U.S. operation was supposed to be an April Fools’ gag.” The article noted that “[i]nvestors have been clamoring for shares of companies involved in electric vehicles and have recently been pouring money into the stocks of established car makers with solid EV plans.” Other outlets reported that the Associated Press was repeatedly assured by Volkswagen that its U.S. subsidiary planned a name change, which was false.
On this news, Volkswagen AG’s share price fell more than 5% over the next two trading days, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the name "Voltswagen" was never going to be used by the Company's U.S. subsidiary; (2) the Company and its spokespeople purposefully misled reporters, even after the reporters' inquiries about whether the name change was an April Fool's joke; and (3) as a result, Defendants' public statements and statements to journalists were materially false and/or misleading at all relevant times.
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If you purchased Volkswagen securities during the Class Period, you may move the Court no later than March 15, 2022 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Volkswagen securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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