Federal Judge Approves Volkswagen Emissions Settlement
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- Federal Judge Approves Volkswagen Emissions Settlement
November 2, 2016
A $14.7 billion settlement has been approved by a federal judge concerning Volkswagen’s emissions cheating scandal. The approval is the largest auto industry settlement in U.S history.
Volkswagen has offered to buy back affected vehicles or modify them to meet current emissions standards. This is on top of the reimbursement payments between $5,000 and $10,000 that have been approved depending on the model of vehicle that was affected.
In addition, leases on the affected vehicles can be terminated if consumers choose to exercise a buy back option.
Approximately 475,000 Volkswagen owners of 2.0-liter vehicles will be affected by the settlement.
As part of the settlement, Volkswagen has also agreed to donate $5 billion to support environmental protection programs that will help reduce emissions and promote the development of zero-emissions vehicles.
The settlement does not cover 3.0-liter vehicles, which approximate 90,000 vehicles. Those vehicles will likely be addressed in a separate settlement agreement.
What Was the Volkswagen Scandal?
The Volkswagen scandal involved representatives from Volkswagen admitting that the company installed “cheating devices” on diesel-powered cars between 2009 and 2015. These devices allowed the vehicles to pass emissions tests by reporting the vehicles as emitting fewer pollutants than it actually was.
In fact, the vehicles actually released emissions that were significantly above the legal limits. In some cases, those rates were 40 times the legal limit for nitrogen oxide, which has been known to cause respiratory problems in humans.
At least one engineer was also criminally charged in relation to the scandal. He pled guilty to charges of conspiracy to defraud the government, wire fraud and violating the Clean Air Act. The agreed upon settlement will also address criminal allegations as well.
If you own a vehicle that was involved in this scandal, you may have legal options. Contact one of the Volkswagen emissions attorneys at the Phillips Law Group to receive a free, no obligation consultation to find out if you are entitled to compensation.
Call 1-800-706-3000 or fill out a Free Case Evaluationform to get started.
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