(Bloomberg) — The U.S. Justice Department sued Volkswagen AG for installing illegal devices meant to defeat emissions testing, and laid out claims that could push penalties into the billions of dollars — an opening salvo in a legal battle that could be far more costly for the German carmaker than had been expected.
The civil complaint filed Monday accuses the automaker of four violations of the Clean Air Act, which provides for penalties that could reach $46 billion, according to Bloomberg Intelligence analyst Kevin Tynan — more than twice the maximum some legal experts had estimated.
The penalties sought are expected to be far less, but would still be in the billions of dollars, according to Justice Department officials.
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