Court Case Means Emissions Scandal Isn't Going Away For Volkswagen

Volkswagen AG (ADR) VLKAY VLKPY had a difficult 2015, as the company was accused of cheating on emissions tests by installing sensors designed to defeat testers and make the company's cars look more environmentally friendly than they really were. Although the firm has done a lot of damage control over the past few weeks, it appears that 2016 will be marred as well by negative press regarding the scandal.

Court Case

On behalf of the Environmental Protection Agency (EPA), the U.S. Department of Justice filed a lawsuit against the German automaker on Monday, a step that is likely to put even more pressure on the firm. The lawsuit could ultimately result in the company paying over $18 billion in penalties, although the judge would determine the exact amount.

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Just The Beginning

Monday's lawsuit marks the beginning of what is likely to be a long series of charges against the company regarding this emissions issue. Many expect the automaker and some of its executives to face criminal charges as well.

No Resolution Yet

While Volkswagen has assured the public that it is working to resolve the issue(s), the company's discussions with the EPA have yet to yield a tangible plan. The EPA has said its efforts to strike a deal with Volkswagen have "not produced an acceptable way forward," and that by filing the lawsuit, the agency is taking "an important step" toward resolution.

Uncertain Future

It remains unclear just how much the emissions scandal is going to cost Volkswagen, as the company is still undergoing a series of investigations from regulators around the world to determine how far-reaching the problem was.

It also remains to be seen whether the firm will be able to weather the storm, as many expect that the U.S. government is out to make an example of the firm in order to deter others from rule-breaking.

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