WASHINGTON, Jan 10 (Reuters) - Truck engine maker
Cummins Inc CMI.N agreed to settle a lawsuit filed Wednesday
by the Justice Department and California and pay a
record-setting fine of about $1.65 billion for installing defeat
devices on hundreds of thousands of engines.
In December, the Justice Department said Cummins had agreed
in principle to the settlement the government said was the
largest-ever civil penalty for a Clean Air Act violation. Under
the proposed settlement subject to court approval, Cummins will
pay $1.48 billion to the federal government and $164 million to
California.
The Department said Cummins allegedly installed so-called
"defeat devices" to bypass or disable emissions controls such as
emission sensors and onboard computers.
(Reporting by David Shepardson; Editing by Chizu Nomiyama)
((David.Shepardson@thomsonreuters.com; 2028988324;))