Volkswagen Shares Fall on Fears of Bigger US Penalty – Wall Street Journal

Volkswagen AG shares fell Tuesday amid speculation that a U.S. Justice Department lawsuit could lead the German car maker to pay much higher fines than previously expected.

The civil lawsuit, which was filed Monday, reaffirms allegations environmental regulators made last year that Volkswagen installed “defeat” devices to dupe emissions tests in 580,000 diesel-powered vehicles sold in the U.S.

In its complaint, the Justice…