Volkswagen AG (“Voltswagen” 2021)

  • Dismissed

Investigation
03/29/2021

Initial Lawsuit
04/30/2021

Lawsuit Progression
07/21/2021

Dismissal
09/16/2021

Investigation

  • Continous Holding
    March 29, 2021 to March 30, 2021
  • Proposed Claim
    Securities Violation

Investigation regarding Volkswagen’s draft press release published announcing a name change to Voltswagen, an “April Fools’ gag” relied upon.

Main Event

April Fools Voltswagen

03/30/2021

News Outlets

The Wall Street Journal publishes an articles entitled “No, Volkswagen Isn’t Rebranding Itself Voltswagen” stating that “. . . a spokesman for the parent company in Germany later said the move was a joke.”

“The name change, which immediately lit up social media and online news sites, was originally intended as an early April Fools’ Day stunt to get people talking about VW’s ambitious electric car strategy as the company rolls out its first all-electric sport-utility vehicle, the ID. 4, in U.S. dealerships.” While investors took it seriously, the price per share moved, putting the car maker’s communications team on the defensive.

“We didn’t mean to mislead anyone,” a Volkswagen spokesman in Wolfsburg told The Wall Street Journal. “The whole thing is just a marketing action to get people talking about the ID.4.”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$36.3 $37.75 $-1.45 -3.84%
See more on Factual Timeline

Initial Lawsuit

First Complaint - 04/30/2021
The complaint was voluntarily dismissed by the plaintiff without prejudice.
Contact an attorney to know more about the filing and dismissal of a complaint.

This is a class action on behalf of persons or entities who purchased or otherwise acquired publicly traded Volkswagen securities between March 29, 2021 and March 30, 2021, inclusive.

  • Filing Date
    04/30/2021
  • Class Period
    03/29/2021 to 03/30/2021
  • Transgression
    Securities Violation
  • Filing Firms
    The Rosen Law Firm, P.A.
  • Case Title
    Gerald Montag v. Volkswagen AG
  • Docket Number
    2:21-cv-03678
  • Court
    California Central District Court
  • Free File
    Complaint

Allegations

According to the complaint, 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 allegedly failed to disclose to investors that:

(1) “Voltswagen” was never going to be used by Volkswagen AG, Volkswagen Group of America, Inc., or on any relevant vehicle;
(2) Volkswagen AG, Volkswagen Group of America, Inc., and their spokespeople purposefully misled reporters regarding the now-purported “joke” and/or “promotion”;
(3) as a result, defendants’ public statements and statements to journalists were materially false and/or misleading at all relevant times

Defendants

  • Company
    Volkswagen
  • Company
    VWoA
  • Chief Executive Officer
    Scott Keogh
  • Head of communication
    Mark Gillies

Lawsuit progression

  • Docket Number
    2:21-cv-03678
  • Court
    California Central District Court

Lead Counsel

07/21/2021

The court issued an order appointing the lead plaintiff and lead counsel.

Dismissal

On 09/16/2021, the court dismissed the complaint without prejudice.

Why was the case dismissed?

The Court dismisses the action without prejudice for failure to timely serve process pursuant to Federal Rule of Civil Procedure 4(m).

[Plaintiff] presents no explanation, let alone a showing of excusable neglect, supporting her failure to complete service between the time the Court extended the deadline to complete service and the extended deadline.

Free File
Order on Motion to Dismiss

[stockdio-historical-chart symbol=”VWAGY” stockExchange=”NYSENasdaq” width=”500″ height=”330″ motif=”blinds” palette=”humanity” includeVolume=false]

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