What criminal sanctions will Volkswagen face going forward? That issue was explored recently in a Wall Street Journal article that discussed the ongoing negotiations between the company and the U.S. Justice Department. The issues raised for VW are above and beyond those that were resolved between VW and the U.S. Environmental Protection Agency, certain states, and U.S. consumers in a civil settlement of approximately $15 billion earlier this year.
This potential criminal resolution brings up several questions, such as what type of resolution? Typically, a company would seek a Deferred Prosecution Agreement so that at the end of the term of the DPA, the charges would be dismissed. Such an agreement would usually be coupled with a fine and penalty and the question would be whether VW would receive any credit for the civil settlement. It would also list out the underlying facts that would be exhibit one in any shareholder, customer, VW-dealer, or other litigation.
