Former VW Engineer Charged in Rivian Insider Trading Case

Two former Volkswagen Group engineers have been charged by U.S. federal prosecutors with allegedly using non-public information about Volkswagen’s joint venture with Rivian to trade stocks. The two individuals purchased Rivian shares before Volkswagen announced on June 26, 2024, that it would invest $5 billion in Rivian to form a joint venture. Following the announcement, Rivian’s stock price surged by 23%. Michael Stumpf reaped approximately $250,000 in profits, while Michael Plank gained about $50,000. Plank also disclosed inside information to a relative, who subsequently made $12,000 in illicit gains. According to the indictment, Stumpf searched for “statute of limitations for insider trading” eight days before the public announcement, and after the trades came under scrutiny, Plank’s relative searched in German for “how insider trading convictions are secured.” Both men are charged with conspiracy and securities fraud, which carry a maximum penalty of 25 years in prison if convicted. Stumpf, 31, and Plank, 45, both reside in San Jose, California, and are scheduled to appear in federal court in California.