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Volkswagen Case: Fix for Diesel VW Cars and Owner Settlement Announced


This morning attorneys for the United States, plaintiff lawyers representing consumers, and the Defendant Volkswagen announced a program where VW will buy back affected vehicles as well as compensate owners for their trouble. The deal will allow the German manufacturer to bring some certainty back to its operations, while also providing relief to disgruntled drivers.

Judge Charles Breyer, who oversees the massive multi-district litigation from his San Francisco courtroom, had strongly urged the company to come to today’s hearing with a plan in place. He intimated that failure on Volkswagen’s part to do so could lead to an expedited trial this summer over the issues. Judge Breyer has called the payment to consumers “substantial compensation.” The exact terms and payment amounts remain confidential, but should be revealed prior to a June 21 deadline.

Today’s announcement does not include damages, fines or penalties that may be levied against VW by the EPA, FTC or California’s CARB nor the many state and local governments that have sued the automaker. Those governmental entities are seeking additional billions from Volkswagen. In addition, Volkswagen dealers have not yet resolved their issues with the company.

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