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US Sues Volkswagen Over Emissions Scandal
That means the fines could quickly top $18 billion if VW has to pay the full amount spelled out in the suit.
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“The United States will pursue all appropriate remedies against Volkswagen to redress the violations of our nation’s clean air laws”, said Assistant Attorney General John Cruden, head of the departments environment and natural resources division.
A VW spokesman said the company was still reviewing the suit.
Monday’s complaint is distinct from a parallel criminal investigation of VW by the Justice Department.
In addition to Volkswagen, the complaint also targets two VW-subsidiaries, Porsche and Audi. Criminal charges would require a higher burden of proof than the civil lawsuit.
Volkswagen, which has admitted to the cheating, equipped some of its diesel cars with “defeat devices” to trick regulators.
Volkswagen’s earlier admissions eliminate nearly any possibility that it could defend itself in court, Daniel Riesel of Sive, Paget & Riesel PC, who defends companies accused of environmental crimes, said.
Even after U.S. officials announced charges against VW for installing defeat devices on 2.0 liter diesel cars, VW failed to disclose similar violations on 3.0 liter diesel cars.
The Justice Department did not name a specific overall penalty it was seeking.
The Justice Department says the software was able to detect when a given vehicle was being tested for compliance with EPA emissions standards, and would turn on acceptable emissions controls only during that time.
The automaker is also facing an European Union inquiry over the scandal, which is said to have impacted up to 11 million vehicles worldwide.
Justice Department officials said on Monday the case was filed in the Eastern District of MI because that is where “significant activity” related to the company’s cheating scheme occurred.
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“We will continue to co-operate with all government agencies investigating these matters”.