Judge Approves $14.7 Billion VW Dieselgate Settlement
By Paul Riegler on 25 October 2016
U.S. District Judge Charles Breyer gave the green light to the $14.7 billion settlement reached with consumers and regulators in June.
Under the terms of the settlement, VW will buy back models with 2.0-liter diesel engines that were equipped with the so-called defeat devices used to beat emissions tests. VW will offer car owners a cash payment ranging from $5,100 to $10,000 plus the option of a buyback or a repair to bring the car's emissions into compliance.
"Final approval of the 2.0L TDI settlement is an important milestone in our journey to making things right in the United States," said Hinrich J. Woebcken, Volkswagen Group of America's CEO.
While Tuesday's ruling resolves the lion's share of VW's exposure in the Dieselgate matter, it still faces multiple unresolved issues including a possible trial with buyers of its 3.0-liter V6 diesel cars and shareholder claims of diminished value.
The settlement calls for the Wolfsburg-based automaker to budget up to $10 million for buybacks. It will be required to pay a fine of $2.7 billion to federal and California regulators and those dollars will be used to cover pollution-reduction projects.
Volkswagen's settlement is one of the largest in history, exceeded only by a handful of cases including the $246 billion Tobacco Master Settlement Agreement in which between the four largest tobacco companies and 46 U.S. states.
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