Volkswagen AG (ADR)(OTCMKTS:VLKPY) was a notable decliner in the overnight trading session. The stock plummeted by close to 5% on the back of 2 times the average daily volumes, which is considered to be bearish signal. The stock has been forming lower lows and lower highs, which is pointing towards the fact that bears are using every rally in the stock as a selling opportunity. The momentum indicator for the stock has given a fresh sell signal. Traders believe the stock could head to levels of $20.55 in the near term. The stock currently trades below all important daily moving averages.
November 24, 2015 is the last day to file a lead plaintiff motion regarding the class action field against Volkswagen AG (ADR)(OTCMKTS:VLKPY). As the deadline is nearing, law officials at Howard G. Smith have reminded all the shareholders of Volkswagen to ask for lead plaintiffs who can represent them in the courtroom.
As per the reports, those who bought the shares of Volkswagen between November 19, 2010, and September 21, 2015, are eligible to apply for a lead plaintiff.
Insights On The Matter
Shareholders who bought Volkswagen stocks during the time as mentioned above had to suffer huge loss, which got the attention of many legal prosecutors. They want the company to take the responsibility for this loss and conclude the case without much delay.
It’s not the stock market movement that led the customers into this troublesome situation, but Volkswagen’s continuous cheating on U.S. government. As per the reports, it has accepted that it misled the government on many occasions when it comes to air pollution tests. If Volkswagen is found guilty in all the charges, the government can put charges worth billions along with criminal prosecution.
According to reports, Volkswagen sold Audi and diesel Volkswagen cars over the last five years that were equipped with a special software. When turned on, this software would switch on the pollution control during official emission testing. When there’s no testing, these cars increased the pollution level as much as 40 to 60 times above the legal limits.
U.S. authorities can impose a fine of $37,500 per vehicle for about 482,000 vehicles, making it to $18 billion total fine. There are allegations that the employees of Volkswagen misled the investors about this cheating, which might put them into troubles.
Those investors who think they have been cheated by the company or have suffered a loss in the stock market can file a lead plaintiff motion until November 24, 2015.