WASHINGTON — The U.S. Securities and Trade Fee has opened an inquiry into the U.S. unit of Volkswagen Group over a advertising and marketing stunt during which it falsely stated it was altering its title in america to “Voltswagen,” an individual briefed on the matter confirmed to Reuters.

Spiegel first reported the inquiry and the SEC’s request for details about the difficulty made in early April and quoted VW as confirming the investigation.

Volkswagen declined to touch upon the matter to Reuters. The SEC didn’t reply to a request for remark.

The corporate in March apologized after a false assertion it issued a couple of phony title change was broadly slammed on social media.

The stunt, which got here simply forward of April Idiot’s Day, was meant to name consideration to its EV efforts, the carmaker stated.

The preliminary assertion outlining the title change, posted on its web site and accompanied by tweets, was reported by Automotive News, Reuters and different shops globally and included an in depth description of its purported rebranding efforts and new logos.

No less than one analyst wrote a analysis be aware praising the title change. VW’s most well-liked shares, widespread shares and ADRs rose on the day of the phony title announcement.

Volkswagen Group of America CEO Scott Keogh instructed Reuters in an April 1 interview that the phony title announcement was a “gag” and an try and “have some humor and “to have a good time our profound give attention to electrification.”

He additionally mentioned the “gag” at length in an interview with Automotive News.

Volkswagen in 2015 admitted to utilizing unlawful software program to rig diesel engine assessments within the U.S., sparking Germany’s greatest company disaster and costing the carmaker greater than 32 billion euros ($39 billion) in fines, refits and authorized prices.