VW settles emissions cheating class action for $80M

Update:

• Volkswagen and Porsche agreed to pay $80 million to resolve claims the auto manufacturers cheated emissions and fuel-economy tests for almost 500,00 gas-powered Porsche vehicles.
• Drivers claimed Volkswagen and Porsche manipulated the tests to make the cars appear to be more environmentally friendly than they are.
• Drivers claim they were injured by the alleged scheme by unwittingly owning vehicles that didn’t meet fuel economy and emissions standards.
• Consumers who purchased certain gas-powered model year 2005-2020 Porsche vehicles are eligible for reimbursement, per the settlement.
• The settlement classes will be divided into three groups.

Volkswagen Porsche Emissions Lawsuit Overview:

• Who: Volkswagen and Porsche move to toss a class action lawsuit filed against them out of California federal court
• Why: The class action lawsuit alleges that both Volkswagen and Porsche created an emissions cheating scheme that deceived buyers and lessees with allegedly illegal fuel economy tests
• Where: The class action lawsuit includes 37 car owners or lessees across 18 different states who drove Porsche vehicles with model years 2007 to 2018.

(Aug. 18, 2022)

Drivers have urged a California federal court to reject Volkswagen and Porsche’s bid to toss out a class action lawsuit that alleges the two vehicle giants cooked up an emissions cheating scheme that fudged fuel economy tests for more than 400,000 vehicles.

The two companies had previously called on U.S. District Judge Charles Breyer to reject the drivers’ claims, saying they were being too speculative about their injuries, Law360 reports.

However, the drivers fired back in a brief saying the allegations of “creative engineering” schemes made in the lawsuit were supported by through reporting from multiple sources, “buttressed by ongoing regulatory and criminal investigations, and confirmed by the KBA’s [Germany’s motor vehicle regulator] halting of certificates of conformity for certain Porsche vehicles, Porsche’s own stop-sale order, and plaintiff’s expert testing.”

The class action lawsuit includes 37 car owners or lessees across 18 different states who drove Porsche vehicles with model years 2007 to 2018. The drivers allege the two companies manipulated Porsche test vehicles to appear as though they had lower emissions, and cost less to refill through three main schemes: modifying the drive shaft and axel of test vehicles to appear more efficient; installing secret software so vehicles appeared cleaner in test drives; and adding the high-performance “Sport Plus” mode that emits more pollutants than legal limits allow.

The drivers allege seven types of Boxsters, Caymans, 911s and Panameras “differed materially” from one used for regulatory testing. The also allege when the 2013 Boxster/Cayman S, 2014 Panamera Turbo, 2015 911 S, 2016 Cayenne GTS and 2017 Porsche Cayenne S models are in Sport Plus mode, they  “emit pollutants including NOx, in excess of legal requirements.”

Porsche currently has a stop-sale order on model year 2012-2018 vehicles with Sport Plus mode, as it is “currently investigating emissions performance,” which the drivers say obviously means there are emissions issues.

Volkswagen and Porsche argued in their motion for dismissal that the drivers based their class action lawsuit on allegations copied from German news articles alleging the companies vehicles in Europe had emissions issues. They also argued the drivers’ claims were preempted by the Environmental Protection Act.

But the drivers rejected that, saying the companies separately violated consumer protection laws and deceived them about the fuel economy and emissions performance of their vehicles.

In October 2020, Volkswagen and Porsche were hit with a separate pair of class action lawsuits over Porsche emissions, alleging certain models of the luxury vehicles use illegal emissions-cheating devices. The devices, which were allegedly in the 2010-2016 model year Porsche Panamera and 2009-2016 model year Porsche 911, switch off exhaust filters depending on the mode of the internal engine.

Are you a Porsche owner? What do you think about allegations the carmaker used illegal emissions-cheating devices? Tell us in the comment section below.

The drivers are represented by lead counsel Elizabeth J. Cabraser, Kevin R. Budner, Phong-Chau G. Nguyen, David S. Stellings, Wilson M. Dunlavey and Katherine I. McBride of Lieff Cabraser Heimann & Bernstein LLP, among others.

Volkswagen and Porsche are represented by Robert J. Giuffra Jr., Sharon L. Nelles and Laura Kabler Oswell of Sullivan & Cromwell LLP, and Cari K. Dawson of Alston & Bird LLP.

The Porsche emissions scheme multidistrict litigation is In re: Volkswagen “Clean Diesel” Marketing, Sales Practices and Products Liability Litigation, Case No. 3:15-md-02672, in the U.S. District Court for the Northern District of California.

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