In re Volkswagen "Clean Diesel" Marketing, Sales Practices, & Products Liability Litigation

*1039 ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTIONS TO DISMISS THE FIRST AMENDED CONSOLIDATED SECURITIES CLASS ACTION COMPLAINT

In September 2015, Volkswagen admitted to regulators and the public that it had used a “defeat device” — software designed to cheat emissions tests — in nearly 600,000 TDI diesel engine vehides sold in the United States (the “Affected Vehicles”). Soon after, purchasers of Volkswagen-sponsored Level 1 American Depository Receipts (“ADRs”) filed actions against the Company and management under the Private Securities Litigation Reform Act (“PSLRA”). These-actions were consolidated before this Court and, in January 2016, the Court appointed Arkansas State Highway Employees’ Retirement System (“ASHERS”) as Lead Plaintiff. (Dkt. No. 545.) On March 10, 2017, Volkswagen AG pled guilty to three criminal felony counts as a result of the defeat-device scheme, including conspiracy to defraud the United States and the Company’s U.S. customers, and to violate the Clean Air Act, by lying about whether the Affected Vehicles complied with U.S. emissions standards; (See United States v. Volkswagen AG, No. 16-CR-20394, Dkt. 68, 2017 WL 1093308 (E.D. Mich.…