Two Volkswagen Engineers Charged with Insider Trading Related to Rivian Joint Venture

Charges Filed Against Volkswagen Engineers

The U.S. Department of Justice has charged two Volkswagen engineers, Michael Stamp and Marcus Plank, with securities fraud. The indictment, unsealed by the U.S. District Attorney for the Southern District of New York, alleges that the engineers engaged in an insider-trading scheme.

Alleged Insider Trading Scheme

Stamp and Plank allegedly purchased Rivian stock and options after learning about the planned joint venture between Volkswagen and Rivian, internally codenamed “Project Climb.” They reportedly made these purchases before the public announcement of the partnership, profiting from the subsequent 23% rise in Rivian's stock price after the June 25, 2024, announcement. Stamp realized approximately $250,000 in profits, Plank about $50,000, and a close family member of Plank about $12,000.

Context of the Joint Venture

The joint venture between Rivian and Volkswagen focuses on developing electric vehicle architecture and software. Volkswagen initially committed to invest $5 billion in Rivian, with the total investment growing to $5.8 billion, making Volkswagen Rivian’s largest shareholder.

Awareness of Illegality

Investigators allege that the engineers were aware their actions were illegal. The indictment states that eight days before the joint venture was announced, Stamp searched for “statute of limitations insider trading,” and Plank’s close family member searched, in German, “how is insider trading prosecuted?” The pair were arrested and are scheduled to appear in U.S. District Court.