U.S. Sues VW for Violating Clean Air Law

The U.S. Dept. of Justice has filed a civil lawsuit against Volkswagen AG that accuses the carmaker of equipping 600,000 vehicles in the U.S. with software to thwart federal emission rules. The maximum fine possible is close to $90 billion.

The complaint charges VW with four counts of violating the U.S. Clean Air Act. It claims the company “knowingly concealed facts” about the software, which reduced emission levels only when a vehicle was undergoing pollution tests. The lawsuit says VW “impeded and obstructed” the government’s ability to determine what the software was doing.

The complaint covers vehicles sold in the U.S. that were equipped with the group’s 2.0-liter 4-cylinder diesels and 3.0-liter V-6 diesels. Penalties could total several billion dollars, according to the Justice Dept.

A legal expert tells Reuters VW is virtually certain to be found guilty, since a civil suit requires only proof that cheating occurred—something the company has already admitted. But he says VW could argue for a reduced fine to avoid an economic blow severe enough to produce “massive” layoffs.