A Collaboration with the University of Pittsburgh

Volkswagen reaches $4.3 billion settlement in criminal and civil cases

[JURIST] German automaker Volkswagen (VW) [corporate website] confirmed] Tuesday that it had reached a $4.3 billion dollar settlement in the US in which it will plead guilty to criminal charges that it violated the Clean Air Act [official website] and obstructed justice. The $4.3 billion figure [Reuters report is just part of the $20 billion the scandal has cost VWso far. While Volkswagen is likely attempting to finalize a deal before the change of presidential administrations next week in an attempt to avoid delays [NYT report]. The settlement will still need to be approved by a federal judge.

VW has been steeply penalized internationally for a scandal [JURIST op-ed] that saw the automaker cheat emissions standards with software designed to fool testing equipment. Earlier this week corporate executive Oliver Schmidt was arrested [JURIST report] by the FBI on charges that he had conspired to defraud the US. VW faces sanctions in South Korea, Spain, Germany and Australia in addition to other sanctions [JURIST reports] in the US. The EU announced [JURIST report] in December a plan to hold member nations accountable for VW's fraud, increasing the likelihood that other states may be added to the list of those suing the automaker.

About Paper Chase

Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

© Copyright JURIST Legal News and Research Services, Inc., 2013.