Maryland officials announced Wednesday that they had reached a multimillion-dollar settlement with Volkswagen AG and two of its affiliates for using devices in cars that violated the state’s environmental laws.

The “defeat devices” installed in vehicles enabled them to pass emissions tests. But under actual driving conditions, vehicles with the devices installed emitted up to 40 times the allowable limit of nitrogen oxide. These devices had been installed in vehicles from model years 2009 to 2015, according to the lawsuit…

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