Volkswagen and its affiliates, Audi and Porsche, are facing fresh lawsuits filed by New York, Massachusetts, and Maryland over emissions cheating. (Photo : Getty Images/Alexander Koerner)
The attorneys general of the states of New York, Massachusetts, and Maryland have filed lawsuits against Volkswagen Group (VW), as well as its affiliates Audi and Porsche over diesel emissions cheating.
The complaint alleges that the German carmakers have defrauded customers as well as violated environmental laws by installing illegal software on diesel vehicles that allowed car owners to cheat emissions testing.
The lawsuits, according to Fox News, claim that Volkswagen and its affiliates sold thousands of cars equipped with the so-called "defeat devices." The complaints also allege that top VW executives, including its former chief executive officer, Martin Winterkorn, were aware of the deception and had a hand in covering it up.
The report noted that the lawsuit, which was announced on Tuesday, comes after VW agreed to spend up to $15.3 billion to settle government and consumer lawsuits over the emissions deception. The cheating was first disclosed in 2015.
Fox cited New York Attorney General Eric Schneiderman and Massachusetts Attorney General Maura Healey as stating at a news conference in New York City that the settlement did not resolve claims regarding the automaker's violation of state environmental laws and also did not cover all affected vehicles.
Meanwhile, VW said in a statement that it is already in talks with authorities about a "comprehensive national resolution" to all the remaining environmental issues related to "the diesel matter." The automaker also pointed out that it is ready to buy back or to modify the affected vehicles, and to create a $2.7-billion environmental trust. It will also be investing $2 billion on infrastructure for zero-emission cars.
According to The New York Times, the new lawsuits contradict VW's portrayal of the deception and represent a new threat to VW's reputation, finances, and management. The suits also connect VW's current CEO Matthias Muller to the scandal, claiming that he knew about the company's decision in 2006 to not install equipment that are needed to meet American clean-air standards to Audi vehicles.
Muller was head of project management at Audi at the time of the 2006 decision. He only became CEO at VW in September, after Martin's resignation following the Environmental Protection Agency's accusation of diesel deception.
The NY Times report recalled that in 2015, VW had admitted to equipping 11 million cars worldwide with software that enables them to cheat emissions tests. The company maintained that this deception was limited only to a small number of people and denied that top management did not have any knowledge about this defeat device.
The complaints identified six different cheating software or defeat devices. They described the software as a cost-saving measure because meeting the United States' emissions standards would have necessitated an overhaul of the vehicles.
The suits further claim that VW made false statements to regulators and broke laws that require the vehicles to carry approved pollution control systems.
New York's suit alone exposes VW to state penalties amounting to over $500 million. The suits launched by Massachusetts, Maryland, and other states that may follow will substantially add to this amount.
Aside from these fresh lawsuits, VW is also facing shareholder claims and criminal investigations from around the world. Meanwhile, the U.S. Department of Justice stated that it was still pursuing criminal inquiry.
Watch this video report on VW's settlement terms related to the emissions cheating complaints that were filed against it.
