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Justice Dept. Launches Criminal Probe in VW Diesel Cheating Scandal
The U.S. Dept. of Justice is pursuing a criminal investigation of Volkswagen AG's admission that its diesel-powered cars were rigged to pass federal emission tests while polluting on the road, sources tell Bloomberg News.
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The U.S. Dept. of Justice is pursuing a criminal investigation of Volkswagen AG's admission that its diesel-powered cars were rigged to pass federal emission tests while polluting on the road, sources tell Bloomberg News.
The Justice Dept.'s Environment and Natural Resources Div.is conducting the probe. At least one Congressional hearing into the issue also has been announced.
The first consumer fraud lawsuit against VW was filed on Friday in California, The Wall Street Journal reports. The complaint says the company's customers paid extra for so-called "clean diesels" that now have diminished value. The lawsuit, which seeks class-action status, accuses VW of fraudulent concealment, false advertising and violation of consumer rights.
In Europe, Germany's deputy environmental minister Jocchen Flasbarth describes VW's transgression as a "blatant consumer deception." He demands the company reveal how and to what extent it manipulated the behavior of its diesels to game government tests.
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