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The U.S. Justice Department has filed a civil action against Fiat Chrysler Automobiles NV, alleging the carmaker of illegally using software to cheat regulation emission tests in 104, 000 diesel vehicles sold since 2014.
The civil lawsuit filed in a Detroit federal court is seen to eventually result in a settlement. The U.S. government accused the Italian-American auto maker of using defeat-device software that allowed several of its car models to pass government emission tests and pollute beyond the legal limits.
The legal action accused the carmaker of violating the federal Clean Air Act and aims to gain injunctive relief and civil penalties. VM Motori SpA, a firm owned by Fiat Chrysler was also named a defendant in the suit. The company designed the engine in question.
Fiat Chrysler expressed its disappointment regarding the Justice Department's move to file a suit and said it would strongly defend itself against the cheating claims.
U.S.-listed shares of the company fell 4.1 percent to end at $10.32. The decline adds to the drop the stock suffered after Reuters first reported the DOJ's plan to file a suit.
