Department of Justice Files Suit Against VW over Environmental Violations

On January 4, 2016, a new development in the Volkswagen emission scandal emerged when the U.S. Department of Justice (“DOJ”) filed a civil complaint against the German company on behalf of the U.S. Environmental Protection Agency. The complaint, filed in the U.S. District Court for the Eastern District of Michigan, alleges that the company violated the Clear Air Act by installing emissions defeat devices in up to 11 million diesel engine vehicles worldwide, nearly 600,000 of which are in the U.S. The DOJ specifically cites admissions of the company’s wrongdoings made by Volkswagen of America Inc. CEO, Michael Horn, in a recent congressional hearing.

The DOJ plans to transfer the case to the preexisting Volkswagen multidistrict litigation (MDL) in the Northern District of California. The recently created Volkswagen MDL is comprised of nearly 500 class action suits from consumers who allege that Volkswagen intentionally deceived consumers by advertising its vehicles as clean diesel cars, while in reality the vehicles emitted as much as 40 times the U.S. standard for nitrogen oxides. Presiding U.S. District Judge Charles Breyer has advised Plaintiffs’ attorneys to submit a special settlement master to resolve the suits.

Volkswagen could face up to $48 billion in fines for its violations of the Clean Air Act. The fines are broken down into as much as $37,500 per vehicle for each violation of the law; up to $3,750 per “defeat device” and $37,500 for each day the violation occurred.

The Case is: United States of America v. Volkswagen AG et al.

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