Attorney General Hector Balderas filed the lawsuit in state district court in Santa Fe late Tuesday. He alleges Volkswagen, Audi, Porsche and their U.S. subsidiaries violated state air quality regulations and engaged in deceptive trade practices.
Earlier this month, the U.S. Department of Justice sued on behalf of the federal Environmental Protection Agency. That action alone could potentially expose VW to more than $20 billion in fines under the Clean Air Act.
Hundreds of private class-action lawsuits filed by VW owners in many states also are pending.
VW has admitted to installing software on cars that turns on pollution controls during government tests and shuts them off on the road.
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