Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

Stock valuation - Volkswagen
The primary reason a scandal like this hurts the company is the "bottom line."  Any legal action means defense costs.  In this case the potential of massive fines became reality.  And a buyback program.   So, if any publicly traded company stacked up $10B in assets, doused it in diesel and set it on fire, their stock would take a dip too. Billions in revenue directed to the expense side of the ledger instead of the profit side.  That money should have gone to building the company and dividends.