At least 30 states join forces in VW emissions probe

DANIELLE IVORY

A bipartisan coalition of attorneys general from at least 30 states and the District of Columbia has joined a fast-moving investigation into the possibilities of consumer fraud and environmental violations by the German automaker Volkswagen.

At least two of the attorneys general, from New York and Illinois, have served subpoenas on the company, according to people briefed on the investigations.

The multistate inquiry is taking shape at an unusually fast pace after last week’s announcement by Volkswagen that it had installed software in 11 million diesel cars that had been designed to trick emissions testers, making it appear that the vehicles met pollution standards.

Typically it takes such multistate inquiries weeks to organize and agree on a preliminary strategy. One difference this time is that the target of the investigation, Volkswagen, has admitted that it intended to deceive regulators.

“From the standpoint of an investigator, this case is like arriving at a buffet table that has everything spread out, and it’s just a question of choosing which course to taste first,” said Sen. Richard Blumenthal, a Democrat and former state attorney general from Connecticut who has worked on multistate cases.

A spokesman for Volkswagen, John Schilling, said, “I cannot comment on pending or active litigation.”

In the days since its admission, Volkswagen has become the target of a flurry of legal

inquiries. Several law firms have said they have filed lawsuits on behalf of unhappy vehicle owners and lessees. German prosecutors are looking into possible criminal fraud.

The U.S. Justice Department has opened an investigation into the company’s deception that could result in criminal or civil charges, or both. While the section of the federal Clean Air Act pertaining to automakers does not mention criminal liability for emissions violations, federal prosecutors may still be able to bring criminal charges under another provision of the Act or other laws, including those relating to lying to regulators.

The multistate investigation will follow parallel tracks, one focusing on possible instances of fraud against consumers and one focusing on potential violations of environmental laws, according to people in several states who were briefed on the investigation.

Attorneys general from as many as seven states, including

Connecticut, Massachusetts, New York, Oregon and Tennessee, are expected to lead the charge, these people say.

In addition to the District of Columbia, the states joining forces include: Alabama, Arizona, Arkansas, Connecticut, Delaware, Florida, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nebraska, Nevada, New Mexico, New York, North Carolina, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Vermont, Virginia and Washington.

California will not be joining the group, according to a person at the state’s Justice Department. Instead it will pursue its own inquiry.

This week, the office of the New York state attorney general, Eric T. Schneiderman, served subpoenas on Volkswagen, its Audi unit and Volkswagen’s U.S. affiliate, according to people briefed on the investigation. The subpoenas seek communication records related to the testing of diesel vehicles and the development of the so-called defeat devices used to trick the emissions testers, along with the company’s communications with the U.S. Environmental Protection Agency and the California Air Resources Board.

In addition, they seek documents detailing the people or companies that designed, manufactured and programmed the defeat devices and records shedding light on Volkswagen’s decision to not use technology in many of its diesel vehicles that would use a chemical known as urea to combat smog-forming pollutants. The subpoenas also seek examples of advertising and marketing materials, including those that appeared on the web and in social media, and records of Volkswagen’s organizational structure in its engineering and marketing divisions.

“A problem of this scope, potentially affecting millions of families across the country, demands an intensive multistate investigation,” Schneiderman wrote in an email. “The stakes could not be higher for the health and safety of our communities who, if Volkswagen’s own admissions are true, have for years been breathing air containing excess pollution from their vehicles.”