U.S. Justice Department lawsuit could lead the German car maker Volkswagen to pay much higher fines than previously expected.
The civil lawsuit, which was filed Monday, reaffirms allegations environmental regulators made last year that Volkswagen installed “defeat” devices to dupe emissions tests in 580,000 diesel-powered vehicles sold in the U.S.
In its complaint, the Justice Department cited four claims against Volkswagen, two of which carry a maximum penalty of up to $37,500 per car.
A third penalty carries a maximum of $3,750 per car, and a fourth is a maximum of $37,500 per day of violation, which add up to just over $45 billion.
Some analysts miscalculated that fines could have gone as high as $80 billion, sending Volkswagen’s shares tumbling 6% to a low of €117.71, or $127.50, in early trading in Frankfurt. Once investors recognized the error—that the higher end of the range for the fines was $45 billion, not $80 billion—the car maker’s shares recovered some ground, closing slightly higher at €121.40, but still down 4% from the day before.
