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The owners of nearly half a million polluting Volkswagens in the U.S. will have the option of selling them back to the company or getting them repaired at VW's expense, under a deal announced Thursday by a federal judge.

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The Justice Department sued Volkswagen on Monday over emissions-cheating software found in nearly 600,000 vehicles sold in the United States, potentially exposing the company to billions of dollars in penalties for clean air violations.