SAN FRANCISCO: A federal judge in San Francisco has approved a nearly $15bn court settlement of most claims against Volkswagen for its emissions-cheating scandal.
US District Judge Charles Breyer signed the order Tuesday approving the largest auto-scandal settlement in the nation’s history. “The settlement is fair, reasonable and adequate,” Breyer said. VW will pay attorney fees and costs, including up to $324m in fees and $8.5m in out-of-pocket costs. The settlement releases legal claims from most of the 2-liter VW owners, but it doesn’t affect larger 3-liter six-cylinder diesels, which also cheated on tests. The settlement also doesn’t end any claims against parts supplier Robert Bosch.
Volkswagen admitted last year that about 475,000 VWs and Audis with 2-liter four-cylinder diesel engines were programmed to cheat on emissions tests. Under the settlement, owners of the affected cars have until Sept. 1, 2018, to decide whether to have the car fixed or repurchased. Volkswagen could start buying back the cars as early as next month if the owner submits a claim. The software recognized when the cars were being tested on a treadmill and turned on pollution controls. The controls were turned off when the cars returned to the road. The EPA alleged the scheme let the cars spew more than 40 times the allowable limit of nitrogen oxide.
