BMW: settlement with SEC
(CercleFinance.com) - BMW has agreed to pay 18 million dollars for an out-of-court settlement of a lawsuit over its business practices in the United States, the Securities and Exchange Commission (SEC) announced late on Thursday.
The SEC accused the German carmaker of misleading investors by artificially inflating its sales figures in the US market between 2015 and 2019.
According to the US stock exchange authority, BMW was encouraging its dealers in the United States to count as sold vehicles those that were not actually sold in order to approach internally set targets and maintain its status as leader on the "premium" market in the US.
This continued while the group raised almost 18 billion dollars in several bond issues, the SEC said.
The out-of-court settlement was made, although BMW neither confirmed nor denied these accusations, the SEC said.
The market doesn't seem too convinced at first sight - the share is down around 1.5% in early trading on Friday, underperforming the market in Frankfurt.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The SEC accused the German carmaker of misleading investors by artificially inflating its sales figures in the US market between 2015 and 2019.
According to the US stock exchange authority, BMW was encouraging its dealers in the United States to count as sold vehicles those that were not actually sold in order to approach internally set targets and maintain its status as leader on the "premium" market in the US.
This continued while the group raised almost 18 billion dollars in several bond issues, the SEC said.
The out-of-court settlement was made, although BMW neither confirmed nor denied these accusations, the SEC said.
The market doesn't seem too convinced at first sight - the share is down around 1.5% in early trading on Friday, underperforming the market in Frankfurt.
Copyright (c) 2020 CercleFinance.com. All rights reserved.