Two Volkswagen engineers, Michael Stamp and Marcus Plank, have been charged with securities fraud by the U.S.Department of Justice for allegedly using confidential information about a joint venture with Rivian to profit from stock trades.

The indictment, unsealed by the Southern District of New York, details how the engineers purchased Rivian stock and options before the joint venture's public announcement on June 25, 2024.

The deal, codenamed 'Project Climb,' involves developing electric vehicle architecture and software, with Volkswagen's initial $5 billion investment later increasing to $5.8 billion.The engineers allegedly sold their positions, earning over $300,000 in profits, including $250,000 for Stamp and $50,000 for Plank.U.S.Attorney Jay Clayton emphasized that insider trading undermines market integrity, with the defendants facing up to 25 years in prison if convicted.Investigators noted the engineers researched insider trading laws before the announcement, indicating awareness of their actions' illegality.The case highlights legal risks for exploiting confidential corporate information.