SEC charges Volkswagen and its former CEO with defrauding investors

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SEC charges Volkswagen and its former CEO with defrauding investors
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Surprise charges from the SEC, filed late Thursday, come two years after Volkswagen settled with the U.S. over criminal and civil charges, as the company tries to distance itself from one of its darkest eras.

U.S. regulators charged Volkswagen and former CEO Martin Winterkorn with defrauding investors during itsThe surprise charges from the Securities and Exchange Commission, filed late Thursday in the U.S. District Court for the Northern District of California, come two years after the German automaker settled with the U.S. over criminal and civil charges, as the company tries to distance itself from one of its darkest eras.

In September 2015, Volkswagen installed software on more than 475,000 cars that enabled them to cheat on emissions tests, according to the Environmental Protection Agency. The software reduced nitrogen oxide emissions when the cars were placed on a test machine but allowed higher emissions and improved engine performance during normal driving.

The company has paid about $20 billion in fines and civil settlements. It has also pleaded guilty to criminal charges in the United States and several managers, including Winterkorn, were charged there.

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