Title

Regulators Join in Event-Driven Securities Litigation: The SEC Files New Action Against Volkswagen
Client Memorandum

Created date

3/21/2019

In a suit against Volkswagen filed last week, the SEC alleges that the company committed fraud in connection with offerings of its corporate and collateralized debt. This latest U.S. enforcement action related to diesel emissions from Volkswagen vehicles follows a recent trend of “event-driven” securities litigation in response to alleged corporate misconduct. The SEC's suit is also notable for its focus on performing corporate debt issued by a company without securities listed in the U.S.