A Volkswagen (VW) [corporate website] executive pleaded not guilty in the wake of VW’s emissions scandal. Oliver Schmidt, the former general manager of VW’s environmental and engineering office, was arrested in Miami last month and charged [JURIST report] with conspiracy to defraud the US, alleged violations of the Clean Air Act and wire fraud in the US District Court for the Eastern District of Michigan [official website]. Schmidt has been charged with 11 counts and could face a combined maximum sentence of 169 years in prison. Schmidt has been accused of being aware that VW’s diesel vehicles had software installed that would recognize when the car was being tested and alter emissions output. The government claims Schmidt obstructed the investigation of regulators and lied about his knowledge of VW’s actions. Schmidt also allegedly deleted incriminating e-mails and other documents against a court order to preserve such documents. Schmidt was one of six charged, with the other five living in Germany and facing similar charges.
VW and their employees have been in the spotlight around the world over the emissions scandal. Earlier this month VW agreed to plead not guilty and pay billions of dollars [JURIST report] to correct their 3.0 liter diesel engine vehicles. In December the EU decided to take action [JURIST report] against seven member states over the emissions scandal. A US judge approved [JURIST report] a $14.7 billion settlement in October between VW and the US Department of Justice, the Federal Trade Commission, the state of California and car owners who filed a class action lawsuit over the company’s emissions scandal. In September the Australian Competition and Consumer Commission sued [JURIST report] VW and its local subsidiary for misleading customers. In August a district court in Germany ruled [JURIST report] that a collective complaint against VW may move forward. Like US-style class-action lawsuits, the collective complaint was launched on behalf of multiple investors who lost money following the diesel emissions cheating scandal. In July a judge for the US District Court for the Northern District of California gave preliminary approval [JURIST report] to a $15 billion settlement between VW and the US Environmental Protection Agency, California officials and consumers. In June VW agreed [JURIST report] to spend up to $14.7 billion to settle allegations of cheating emissions tests and deceiving customers in a settlement with US regulators. In March the US Federal Trade Commission filed suit [JURIST report] against VW for false advertising.