VW Emissions Settlement Reached with Both DOJ and FTC

With much anticipation, Volkswagen AG announced that it has reached proposed settlements with both the U.S. Department of Justice and the U. S. Federal Trade Commission following the VW emissions scandal that erupted last year.

Volkswagen’s deal with the DOJ includes up to $14.7 billion along with vehicle buyback provisions as well as funding for pollution control programs.

In addition to the DOJ settlement, Volkswagen will also spend up to $10 billion in a buyback and lease termination settlement with the FTC that is expected to include about 475,000 vehicles of model years 2009-2015 with the 2.0-liter diesel engines.

Volkswagen further agreed to spend $2.7 billion as part of an environmental remediation fund and another $2 billion for initiatives promoting the use of zero emissions vehicles in the U.S., according to a statement made by the company.

In September 2015, Volkswagen was accused of concocting a scheme to purposefully circumvent emissions standards by installing a cheat device that causes vehicles to emit less pollution under testing conditions as compared to normal driving conditions.

These devices were installed in 2.0-liter diesel engine vehicles of certain VW and Audi vehicles in model years 2009-2015.

According to the FTC website, “The settlement covers these models and years: VW Beetle & Beetle Convertible (2013-2015), VW Golf & Golf SportWagen (2010-2015), VW Jetta & Jetta SportWagen (2009-2015), VW Passat (2012-2015), Audi A3 (2010-2013, 2015).”

Combined, the DOJ and FTC settlements will allow consumers to participate in a vehicle buyback program or lease termination.

Alternatively, owners and lessees will also have the option to choose to have emissions modifications performed on their eligible vehicle to allow the car to be modified to meet emission standards set by the Environmental Protection Agency and California Air Resources Board.

Former owners and lessees of the vehicles included in the proposed settlements may also be eligible to receive cash.

The specific dollar amounts for buyback and emissions modification restitution of eligible vehicles are included in a detailed table provided by the FTC.

As part of the $2.7 billion emissions reduction program, the funds will go toward projects across the country that aim to reduce nitrogen oxide emissions. The $2 billion initiatives funding will go toward improving infrastructure, education and access linked to the support and advancement of zero admission vehicles.

Volkswagen’s proposed settlement with the FTC includes injunctive relief that will bar Volkswagen from making misrepresentations designed to deceive consumers about the environmental benefits of its vehicles and also prohibits VW from using cheat devices on their vehicles.

Both settlements include a 30-day public comment period and are subject to approval by the Court.

A settlement website has been established to keep consumers up-to-date on the status of the FTC settlement. Consumers may look up their vehicle by VIN to see if their vehicle is included in the proposed Settlements.

A timeline on the VW settlement website shows that a Court status conference is set for Thurs., June 30, a preliminary approval court hearing is scheduled for Tues., July 26, and the rollout of the Settlement program is expected to take place in the Fall of this year.

Mathhias Müller, Volkswagen’s CEO, said in a statement, “We take our commitment to make things right very seriously and believe these agreements are a significant step forward. We know we still have a great deal of work to do to earn back the trust of the American people.”

Instructions on how to file a claim for the VW emissions scandal class action settlement was not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

The plaintiffs’ steering committee is chaired by Elizabeth J. Cabraser of Lieff Cabraser Heimann & Bernstein LLP.

The VW Emissions Scandal MDL 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.

UPDATE: On July 26, 2016, the court granted the VW Emissions Scandal settlement preliminary approval.  The final hearing has been scheduled for October 18, 2016.  Top Class Actions will continue to provide updates as we learn more.  

UPDATE 2: The Volkswagen, Audi diesel emissions class action settlement is now open! Click here to file a claim!