Volkswagen Execs’ Name Change Prank On April Fools Day Backfires, Investors File Class Action Lawsuit After Losing Money
Volkswagen executives tried to imbue the April Fools’ spirit by releasing a fake company name change announcement yet failed miserably as it resulted in a negative impact on the automaker’s stocks.
Investors were not happy with the gag and are now filing a class action lawsuit against the company.
Officials Release False Statement
Complainant Gerald Montag claimed that company officers resorted to doing a failed marketing stunt in order to artificially drive up company stock value in his class action lawsuit filed against Volkswagen.
The complaint came after the car manufacturer released a false press release breaking the news that the company is switching up its name from ‘Volkswagen’ to ‘Voltswagen.’
The feature was complete with details as to why the company suddenly decided to change its name to steer towards a greener path through its e-vehicles or electronic vehicle offerings.
Volkswagen officials also released statements to back up the release of the announcement. Different executives have given their statements to make it sound legitimate.
The announcement has caused a stir in the automobile industry and community. It caused the company’s stock price to experience an increase in the wake of the announcement.
However, as soon as the truth came out of the bag, pointing out that it was all a hoax, Volkswagen stocks experienced a mild decrease of five percent.
Name Change Not Real After All
A news report has cited the company’s official insight stating that there were no actual plans to change the car maker’s iconic name and admitted that it was all just a harmless marketing ploy to coincide with April Fools day.
Yet investors like Montag believe that Volkswagen’s false announcement caused the decrease in the company’s stocks that hurt the company’s vast majority of stakeholders, including him.
Filed in a federal court in California, the Volkswagen Name Change Prank Class Action Lawsuit is asking the court to hold the company liable for the financial losses incurred by affected company investors.
It is also accusing the company of different violations of a variety of securities regulations governing the stock market. Montag is seeking to establish a Nationwide Class consisting of investors that were negatively affected by Volkswagen’s name change prank.
Volkswagen, officially known as Volkswagen AG, is a German multinational car corporation based in Wolfsburg, Germany.
It was founded more than eighty years ago and is now headed by its CEO Herbert Diess.
The company has a hundred manufacturing plants in over twenty countries. They are the world’s fourth-largest car manufacturer based on the number of units produced.
Editor’s Note on Volkswagen Name Change Prank Class Action lawsuit:
This news report aims to give you the latest details on the proposed class action lawsuit filed against Volkswagen with regards to the prank officials have released stating the company would undergo a name change.
Case Name(s) & No.: Montag v. Volkswagen AG, et al.; Case No. 2:21cv-03678
Jurisdiction: United States District Court for the Central District of California
Allegation(s): Volkswagen company officials have decided to play a prank to affect and dictate the company’s stock direction.
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