The prosecutors were acting on information regarding a possible breach of the publication duty as prescribed by the German Stock Corporation act. In words we can all understand, German official are to see if Porsche manipulated the stock market or not.
The raid took place according to German laws, with prosecutors coming to the scene "armed" with judicial search warrants and seized "numerous business documents in the process." Additionally, Wendelin Wiedeking is also being investigated for the same charge, together with the manufacturer's former financial officer, Holger Haerter. The charges were filed by market regulator Bafin.
Porsche responded to the charges saying it is rejecting these allegations. It also says it is cooperating with authorities "and is offering investigating officials its full support in order to clarify the issue as quickly as possible." Below are excerpts from Porsche official press release as a result of the raid.
"This Thursday morning, officials from the public prosecutor's office in Stuttgart with judicial search warrants arrived at the administrative headquarters of the companies in Stuttgart-Zuffenhausen. The officials then searched the business premises of the companies, seizing numerous business documents in the process."
"According to information provided by the public prosecutor's office in charge of investigations, there is a suspicion of breaching the publication duty as prescribed by the German Stock Corporation Act and furthermore of market manipulation."
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