US Sues Volkswagen Billions Over Emissions Deception
Volkswagen runs into some trouble as the U.S. Justice Department filed a civil lawsuit against the company for their alleged violation of the Clean Air Act, according to a report from Reuters. This comes after it was revealed Volkswagen has been installing illegal devices in their vehicles that would cheat emission regulations.
The devices were reportedly found in nearly 600,000 vehicles of the automobile manufacturer. A senior official from the Justice Department said that the penalties could reach billions of dollars. In theory, the fines could be as much as $37,500 per vehicle for each violation of the law.
Assistant Attorney General John Cruden heads the department's environmental and natural resources division and has stressed their intentions saying, "The [U.S.] will pursue all appropriate remedies against Volkswagen to redress the violations of our nation's clean air laws."
The civil lawsuit, filed on behalf of the Environmental Protection Agency, includes four counts of violations against the Clean Air Act including tampering with the emissions control system and failure to report violations. There are also efforts to investigate criminal fraud allegations for misleading consumers and regulators.
Back in September, Volkswagen admitted to the cheat devices in some of their 2.0-liter diesel vehicle models. There are also allegations of the cheat methods occurring in the 3.0-liter diesel models.
Volkswagen reportedly installed software that's able to detect if the vehicle is being tested on a flatbed or running on the road. Once it is able to detect it's not in a testing period, the software makes the emissions control systems slow or shut down so the vehicles emit more air pollution than when it is being tested.
Daniel Riesel of Sive, Paget & Riesel P.C. said the government only needs to prove the cheating happened to win the civil lawsuit, which the company already confirmed with their earlier admissions.
"I don't think there is any defense in a civil suit," Riesel pointed out, adding that Volkswagen will likely negotiate for lower penalties instead.
In an official statement from the company, they promised full cooperation with the agencies saying, "Volkswagen will continue to work cooperatively with the EPA on developing remedies to bring the TDI vehicles into full compliance with regulations as soon as possible."
They continued, "In addition, we are working with Kenneth Feinberg to develop an independent, fair and swift process for resolving private consumer claims relating to these issues. We will continue to cooperate with all government agencies investigating these matters."
However, a bill in Congress dubbed the "Fairness in Class Action Litigation Act," has the potential to bail out the company according to a piece from The Fiscal Times. It's set for a House vote in the first week of January.
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