Former VW engineers Stamp and Plank charged with insider trading on the $5 billion Rivian JV. One netted $250K; searches showed they knew it was illegal. Rivian stock jumped 23% on the deal. Alpha Score 53.
Two former Volkswagen AG engineers were arrested for insider trading after placing bets ahead of the German carmaker’s announcement of a $5 billion joint venture with Rivian Automotive Inc.
Federal prosecutors unsealed an indictment Friday charging Michael Stamp and Michael Plank with conspiracy and securities fraud. The two men allegedly used confidential information they accessed through their jobs at Volkswagen about the venture negotiations, which were made public on June 26, 2024. The deal gave Rivian a crucial cash infusion as the broader EV market faced a demand slowdown.
Prosecutors said Stamp made $250,000 after Rivian’s stock surged 23% on the announcement. Plank made $50,000 and also passed the tip to a close family member who netted $12,000, according to the indictment. Internet searches around the time of the announcement underscored the awareness of illegality: Stamp searched for “statute of limitations insider trading” eight days before the news broke, and Plank’s relative searched in German “how is insider trading prosecuted?” shortly afterward.
“When people misuse confidential information for their own financial gain, they undermine the principles that allow our markets to function fairly and efficiently,” Manhattan US Attorney Jay Clayton said in a statement. “Insider trading is a crime that New Yorkers want pursued with vigor.”
Stamp, 31, and Plank, 45, both of San Jose, California, face as much as 25 years in prison if convicted on the most serious counts. They are scheduled to appear in federal court in California Monday. Lawyers for the two men could not be immediately identified.
The case is US v Stamp, 26-cr-316, in the Southern District of New York.
Rivian’s stock has been volatile since the venture was announced, with the company still burning cash as it ramps production of its R2 SUV. The company carries an Alpha Score of 53 out of 100, a “Mixed” rating from AlphaScala’s quantitative model, reflecting both its strategic progress and ongoing capital needs. More on Rivian’s stock and RIVN stock page is available.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.