States probe VW over emissions, look for settlement money
WASHINGTON (AP) – An expanding investigation into Volkswagen’s (VW) emissions-cheating scandal launched by state attorneys general could last years and will likely end in a negotiated settlement.
Forty-five states and The District of Columbia have joined the review, investigating how VW was able to game emissions tests to hide that its “Clean Diesel’’ cars emitted smog-causing exhaust up to 40 times dirtier than the law allows. The attorneys general are likely to seek compensation for consumers and redress for environmental harm, building their own investigations under state laws that protect consumers from deceptive trade practices and set clean air standards.
“This is a really important case and it has big economic and health consequences. It’s nowhere near the scale of tobacco but you are kind of in that realm,’’ said former Wisconsin governor and attorney general Jim Doyle, who partici- pated in the multistate investigation that ended in a landmark settlement against tobacco companies in 1998. “This is the kind of case that you elect an AG for, to stand up for the safety and health of the people of the state.’’
Volkswagen is ’’looking at an enormous settlement, just enormous, when you think about how many cars are out there,’’ he said.
The case, in some respects, presents a slam dunk: Volkswagen has already admitted wrongdoing, affecting roughly half million cars in the United States.
“This case makes me miss my AG days because there’s such an opportunity to send a message, and the states can be at the forefront of sending a message,’’ said Sen. Richard Blumenthal of Connecticut, former attorney general of his state.
Blumenthal said he was stunned by news that the German carmaker had rigged its software to dupe emissions tests. “Astonishment bordering on disbelief that a company could be so absurdly arrogant and lawless that it would knowingly engage in this type of conduct,’’ he said.
Though the violations appear clear, the multi-state investigation is not likely to conclude quickly. For comparison, a multi-state attorneys general investigation of ignition switch defects involving GM cars – a review that started shortly after GM announced a recall 20 months ago, and remains active today.
Likewise, the VW case in the states promises to unfold at a measured pace. Volkswagen may want to deal first with any criminal charges, as the Justice Department investigates potential illegality by the company and its executives. The Environmental Protection Agency and Federal Trade Commission are also investigating.
“Until the criminal case clears, nobody is going to talk about civil. Volkswagen will not settle until the criminal investigations are resolved,’’ said James E. Tierney, program director of the national state attorneys general program at Columbia Law School, and a former Maine attorney general.