Volkswagen [VW] (corporate website) plead guilty [press release] to fraud, obstruction of justice, and falsifying statements on Friday as required by the $4.3 billion settlement agreement [PDF] between the German auto manufacturer and the US Department of Justice Department (DOJ) [official website]. The guilty plea [PDF] was accepted by US District Judge Sean Cox. In addition to various reforms and oversight the company must undergo under the pending plea agreement, the DOJ has levied charges against seven current and former VW executives for crimes related to the company’s emissions testing.
The VW scandal began in September 2015 when it was leaked that VW had intentionally circumvented emissions tests through installing technology to determine when emissions testing would take place and alter the cars emissions during inspections. It was found that the practice took place for at least six years. 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. 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.