Federal Judge Approves VW Settlement
July 27, 2016—A federal judge approved Volkswagen’s settlement to get 482,000 diesel vehicles with emissions-cheating software off the road through a buyback program, according to a report from Bloomberg.
The $15.3 billion settlement applies to the U.S. Government and 44 states. More than 1,000 lawsuits related to the emissions scandal have yet to be resolved, but approval of this settlement could resolve the other claims more quickly. The settlement only covers VW and Audi 2.0-liter diesel engines from 2009 and later. VW still has to reach an agreement relating to the 3.0-liter diesel engines.
“The parties believe that the proposed settlement program will provide a fair, reasonable and adequate resolution for affected Volkswagen and Audi customers,” VW said in a statement.
The settlement includes $10 billion set aside for buyback, plus another $4.7 billion for government penalties and remediation. In some states there is nothing to stop owners from driving the polluting cars if they don’t agree to the buyback terms. Those owners who do participate will get on average $5,100 in addition to the buyback at September 2015 market prices.