VW Facing Lawsuits From US States Over Diesel Scandal

VW Facing Lawsuits From US States Over Diesel Scandal

Despite a previous settlement with U.S. authorities, VW is facing suits from U.S. states over the environmental damage caused by its illegally polluting vehicles.

The German automaker is now facing legal action by 3 states related to the dieselgate scandal in which VW was found to have installed defeat devices in its diesel vehicles in order to cheat emissions tests. The states are looking to sue VW for the illegal pollution and environmental damage caused by those vehicles.

In a news release, Maryland Attorney General Brian E. Frosh said that details of the Volkswagen suit will be unveiled today. The states involved in this action are Maryland, New York and Massachusetts.

SEE ALSO: Volkswagen to Pay California Another $86 Million

Just last month, VW had reached a partial settlement with those 3 states and 41 others for $603 million to resolve consumer protection claims. That settlement with 44 U.S. states was part of a larger agreement with federal and state authorities which saw VW committing up to $15.3 billion to compensate 475,000 owners of 2.0-liter diesel vehicles. VW is preparing a compensation package for dealers too who have suffered as a result of the scandal.

Also, last week, VW’s fix for 3.0-liter diesel vehicles which were also fitted with cheat software was rejected by the California Air Resources Board.

Volkwagen faces uncertainty in Europe as well. Prosecutors in Germany are looking at ways to fine VW for having installed cheat software on diesel cars in its home market while the EU has said that Volkswagen should compensate owners in Europe too. About 8.5 million diesel vehicles sold in Europe had the defeat devices installed.

[Source: Reuters]