Germany's financial regulator, BaFin, has fined Volkswagen €1.2 million ($1.34 million) for failing to disclose its 2023 financial forecast in a timely and proper manner. The regulator stated that Volkswagen should have issued an 'ad hoc' announcement, as the forecast significantly exceeded market expectations and could have impacted the share price. Instead, the company released the information via a press release, which BaFin deemed insufficient under Germany's Market Abuse Regulation.
Volkswagen can appeal the fine, though no official statement was available as of Friday morning. The fine was imposed on October 1, following a March 3, 2023, announcement that sent VW's stock soaring over 10% during active trading. Under German law, listed companies must immediately disclose material insider information that could affect share prices, with violations carrying fines up to €2.5 million or 2% of annual turnover.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing