Volkswagen Engineers Charged in Rivian Insider Trading Case

Two Volkswagen engineers have been charged with federal securities fraud after U.S. prosecutors accused them of using confidential information about the automaker’s joint venture with Rivian to profit from insider trading.

The indictment, unsealed Friday by the U.S. Attorney’s Office for the Southern District of New York, alleges that Michael Stamp and Marcus Plank earned more than $300,000 by purchasing Rivian stock and options before the companies publicly announced their electric vehicle software partnership.

According to prosecutors, the two engineers learned about the planned collaboration—internally known as “Project Climb”—through their work at Volkswagen. They traded on that non-public information before the announcement was made on June 25, 2024.

Joint venture announcement boosted Rivian shares.

Volkswagen and Rivian revealed their strategic joint venture on June 25, 2024, with plans to develop next-generation electric vehicle architecture and software. Volkswagen initially committed up to $5 billion in investments tied to specific development milestones.

Since then, the partnership has expanded to approximately $5.8 billion, making VolkswagenRivian’ss largest shareholder.

Following the public announcement, Rivian’s share price climbed 23%, according to the indictment. Prosecutors allege Stamp and Plank sold their positions shortly afterwards, with Stamp earning approximately $250,000 in profits, Plank making about $50,000, and one ofPlank’ss close family members realising roughly $12,000.

Investigators cite internet searches.

Federal investigators claim the engineers were aware their actions were illegal. Court documents allege that eight days before the joint venture became public, Stamp searched online for "statute of limitations insider trading.”

The indictment also states that a close family member of Plank searched, in German, “how is insider trading prosecuted?” before the companies announced the partnership.

U.S. Attorney Jay Clayton said the alleged misuse of confidential corporate information allowed the defendants to generate illegal profits while undermining confidence in financial markets. He said insider trading harms ordinary investors and weakens the integrity of the U.S. securities market, adding that federal authorities remain committed to pursuing such crimes.

Defendants face up to 25 years in prison.

Stamp and Plank, both residents of San Jose, California, were arrested Friday and are scheduled to appear before the U.S. District Court for the Northern District of California. The case has been assigned to U.S. District Judge Katherine Polk Failla.

If convicted on the federal securities fraud charges, each defendant could face a maximum prison sentence of 25 years.

Rivian declined to comment on the charges.

A Volkswagen spokesperson said the company is aware of the Department of Justice’s action involving the two individuals. The spokesperson emphasised that the case focuses solely on the accused employees and does not include allegations against Volkswagen itself.

“The action is focused on specific individuals and does not involve allegations against the company,” the spokesperson said in an emailed statement. “As this is an ongoing matter, we are unable to comment further.”