Volkswagen Agrees to $14.7 Billion Settlement After Diesel Scandal

Volkswagen has agreed to settle its diesel emissions cheating claims for $14.7 billion. The federal government and about 475,000 Volkswagen owners had filed suit against Volkswagen for its “clean diesel” cars that included software designed to cheat on air-quality tests.

Volkswagen has agreed to buy back the affected vehicles at their pre-scandal values, as well as award additional cash compensation to affected owners. The compensation will range from $5,100 to $10,000 depending on the original value of the vehicle.

Volkswagen will also pay $2.7 billion to the Environmental Protection Agency for damage to the environment caused by its vehicles.

This civil settlement is the largest by an automobile manufacturer by a wide margin. The next closest are GM’s $2 billion settlement for faulty ignition switches and Toyota’s $1.4 billion for flawed accelerators. It is also the second overall largest settlement; only BP’s Gulf of Mexico oil spill settlement was greater.

The terms of the settlement must be reviewed by United States District Judge Charles R. Breyer in California. Affected owners will not be bound by the settlement.

In addition, Volkswagen faces lawsuits from 85,000 owners of vehicles with different engines in the United States.

If you feel you have purchased a defective product, contact an experienced defective product attorney to discuss your case.

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