IAV GmbH has reached an agreement with the United States Department of Justice (DOJ) to resolve an investigation into the company’s role in Volkswagen AG’s use of defeat devices to evade US diesel emissions standards. Under the terms of the resolution, IAV has agreed to plead guilty to one felony count of conspiracy to violate US law and pay a fine of $35 million.

The company has also agreed to the appointment of an independent compliance monitor for a period of two years.

The agreement notes that IAV played a minor role in the offense and that the company has already taken steps to enhance its compliance programs and internal controls.

The agreement is subject to approval by Judge Sean F. Cox of the US District Court for the Eastern District of Michigan. It does not address IAV’s liability, if any, under the laws and regulations of any jurisdiction outside of the United States. IAV’s US subsidiary, IAV Automotive Engineering, Inc., is not a party to this agreement and was not involved in the violation.