French investigators swept into three Renault SA sites on the morning of Jan. 7 looking for evidence the automaker cheated on emissions tests.<br />The raids remained a secret for nearly a week until a trade union mentioned the news almost as an afterthought in a leaflet about jobs.<br />If management thought the visit wasn’t worth mentioning, they were quickly proven wrong.<br />The stock slumped 23 percent, wiping out 5.8 billion euros of market value before recovering to close down 10 percent.<br />Renault later issued a press release confirming the raids, while trying to stem the sell-off by saying nothing sinister had been found.<br />Investors panicked as the specter of a Volkswagen AG-type scandal loomed after revelations that the Economy Ministry’s fraud office visited the company’s headquarters as well as sites in Guyancourt and Lardy.<br />Lawyers said Renault should have disclosed the raid itself and may face legal claims.
