Martin Winterkorn, the former CEO of Volkswagen who had to leave the field due to the cheating diesels, is no longer prosecuted for allegedly manipulating the market.
That determined the court in Braunschweig, Germany on Friday.
Winterkorn has yet to appear in court in February for other fraud charges.
The court stated that the possible punishment that Winterkorn could receive for not informing investors in time about the problems with the diesel cars is disproportionate to the punishment in the fraud case, which is likely to be considerably more severe.
According to the court, nine million vehicles in Europe and the United States have been committed for fraud.
In 2015, it came to light that Volkswagen applied so-called cheating software that made the engine run differently during an emissions test, resulting in more favorable values.
The diesel scandal cost Winterkorn that same year, despite his defense that he was unaware of the illegal practices, which have now cost Volkswagen more than 30 billion euros.
The fraud trial against Winterkorn will start next month.