On December 8, 2015, the Judicial Panel on Multidistrict Litigation issued a seven-page order consolidating more than 500 lawsuits accusing automaker Volkswagen of cheating on vehicle emissions standards.
The panel designated the California federal court in San Francisco as the best venue for the multidistrict litigation (MDL) because nearly 20 percent of the lawsuits were filed in California, Law360 reports. Thirty actions are pending in California’s Northern District and the state as a whole has 100 of 513 suits filed nationwide.
“Relevant documents and witnesses may be found in both the Northern District and throughout California, given the role played by the California Air Resources Board in uncovering VW’s use of defeat devices on its diesel engines,” the panel wrote in its order.
On September 3rd, Volkswagen admitted to violations of federal emissions standards. The Environmental Protection Agency (EPA) had said the German automaker admitted the violations when asked to explain third-party emissions test results that differed from numbers Volkswagen reported. The company has estimated that about 11 million vehicles worldwide are affected by the scheme, according to Law360. Volkswagen has recently acknowledged that the emissions scandal also affects a number of its gasoline-powered cars. Volkswagen said it had installed special software that fools emissions-testing machinery. Before the admissions, the company had spent more than a year arguing that federal and California regulators were mistaken in their claims about emissions, the New York Times reports.
The judicial panel assigned U.S. District Judge Charles R. Breyer to oversee the MDL, saying the veteran federal judge is well versed in complex MDLs, having presided over nine such cases. “We are confident that Judge Breyer will steer this controversy on a prudent and expeditious course,” the order states.
The consolidation order is the latest step in the scandal over allegations that Volkswagen installed defeat devices in some of its “clean” diesel vehicles in order to appear to comply with emissions standards while actually exceeding allowable levels of pollutants and carcinogens emitted into the air. Volkswagen had enjoyed a reputation for “engineering prowess,” and a “carefully crafted image” as a maker of efficient and environmentally friendly cars, according to the Times.
During emissions tests, Volkswagen diesel engines with illegal software make full use of pollution controls and passed the tests. But during ordinary operation, the engines emit many times the permissible amount of nitrogen oxide, Law360 explains.
The Times reports that Volkswagen has deducted €6.7 billion euros (more then $7.3 billion dollars) from profits to cover the expense of recalling and repairing millions of cars in Europe and the United States equipped with the illegal software. In addition, Volkswagen is expected to have to pay hefty fines to the EPA and regulatory authorities in other countries. It is likely that even more lawsuits will be filed by customers who say the company sold them cars based on false emission standards.
from Parker Waichman http://www.yourlawyer.com/blog/federal-judicial-panel-consolidates-more-than-500-volkswagen-emissions-fraud-lawsuits/
No comments:
Post a Comment