Volkswagen Faces Billions In Fines As U.S. Sues For Violations

"The U.S. Justice Department has sued Volkswagen for up to $90 billion for allegedly violating environmental laws - five times regulators' initial estimate and a reminder of the carmaker's problems nearly four months after its emissions scandal broke.

Although such U.S. lawsuits are typically settled at a fraction of the theoretical maximum penalty, analysts said the size of the claim meant Volkswagen (VW) could face a larger bill than previously anticipated.

"The announcement serves as a reminder/reality check of VW's still unresolved emissions issues," Goldman Sachs analysts wrote in a note, maintaining their "sell" recommendation on the stock."

Julia Edwards and Georgina Prodhan report for Reuters January 15, 2016.