Volkswagen Is Hit With A New Civil Lawsuit

Today, the U.S. Department of Justice filed a civil lawsuit against Volkswagen for allegedly violating the Clean Air Act. The suit alleges Volkswagen used illegal cheating devices on diesel vehicles to change various settings in the emission control system and emit emissions that exceed standards set by the EPA.

“Car manufacturers that fail to properly certify their cars and that defeat emission control systems breach the public trust, endanger public health and disadvantage competitors. The United States will pursue all appropriate remedies against Volkswagen to redress the violations of our nation’s clean air laws alleged in the complaint,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division.

A senior official at the Justice Department tells Reuters the alleged charges could bring penalties totaling billions of dollars against Volkswagen. The official also said the Justice Department could bring criminal charges against the German automaker.

The suit was filed in Eastern District of Michigan, before being transferred to Northern California. This is the place where the class-action lawsuits against Volkswagen are being heard as well.

No word on when a possible trial will start.

With this lawsuit, how much will this affect Volkswagen in the long-term?