German prosecutors raid Jones Day's Munich office in Volkswagen investigation
Volkswagen describes raid as 'unacceptable' and 'clear violation of legal principles'
March 16, 2017 at 04:56 PM
3 minute read
Jones Day's Munich office has been raided by German prosecutors investigating the firm's client Volkswagen.
The move, which came two days before German Chancellor Angela Merkel was due to arrive in the US for a meeting with President Donald Trump, was called "unacceptable" and a "clear violation of legal principles" in a statement by Volkswagen.
Jones Day has been handling an internal investigation for the German auto giant, into an emissions software scandal that led Volkswagen to reach a $15.3bn (£12.4bn) settlement in October to resolve consumer class actions. In January, Volkswagen agreed to pay $4.3bn (£3.5bn) in civil and criminal penalties in an agreement with the US Department of Justice.
In February, Volkswagen agreed to pay another $1.2bn (£971m) to settle a few remaining claims and a suit brought by the Federal Trade Commission involving 75,000 3.0-litre diesel engine vehicles.
German prosecutors have been conducting an investigation into whether certain Volkswagen executives were responsible for the emissions scandal at the company. A summary of Jones Day's findings has been provided by Volkswagen to the Justice Department, but has yet to be released publicly. Reuters reported that Jones Day's probe found instances of wrongdoing by certain Volkswagen executives but exonerated members of the company's management board.
In January, Volkswagen's top emissions compliance officer, Oliver Schmidt, and five other corporate executives were indicted as the company – advised by Sullivan & Cromwell, Steptoe & Johnson and Freshfields Bruckhaus Deringer – agreed to plead guilty to three US felonies related to its emissions scandal. Later that month, Volkswagen's top compliance chief, former German judge Christine Hohmann-Dennhardt, unexpectedly left the company with a $12.8m (£10.4m) exit package, according to news reports.
German prosecutors searching Jones Day's Munich office did so the same day that the headquarters of Volkswagen's Audi unit were also searched, according to German newspaper Handelsblatt, which first had news of the raids. The paper noted that Jones Day's internal investigation is not yet complete.
Two media representatives for Jones Day did not immediately respond to a request for comment on the matter. Volkswagen, in its statement, did not mince words.
"In our opinion, the search of a law firm mandated by a company contravenes the principles of the code of criminal procedure," Volkswagen said.
German legal publication Juve reported that several German firms – such as Brehm & v. Moers, Eckstein & Kollegen, Haver & Mailaender and Krause & Kollegen – have been retained by Audi executives as a result of the investigation by German authorities.
The search of law firm offices by government authorities, while unusual, is not without precedent. The American Lawyer reported in 2009 on the Moscow offices of DLA Piper and White & Case being raided by officials from Russia's interior ministry, as part of an investigation into the development of a hotel in the city.
For more on Jones Day, see: The secretive firm and its very famous client: Trump ties thrust Jones Day into the spotlight
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllHengeler Advises On €7B Baltica 2 Wind Farm Deal Between Ørsted and PGE
2 minute readFidal Launches Disputes Practice; Pinsent’s Paris Arbitration Partner Jumps to Boutique Firm, Plus Other French Moves
5 minute readTrending Stories
- 1Lawyers' Reenactment Footage Leads to $1.5M Settlement
- 2People in the News—Feb. 4, 2025—McGuireWoods, Barley Snyder
- 3Eighth Circuit Determines No Standing for Website User Concerned With Privacy Who Challenged Session-Replay Technology
- 4Superior Court Re-examines Death of a Party Pending a Divorce Action
- 5Chicago Law Requiring Women, Minority Ownership Stake in Casinos Is Unconstitutional, New Suit Claims
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250