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Volkswagen faces billions of dollars in penalties

The U.S. Justice Department sued Volkswagen 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.

By Alan Katz, Margaret Cronin Fisk, Bloomberg | Updated on January 05, 2016
The civil complaint alleges penalties that could reach $46 billion. (AP Photo)

(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.

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