VW Group Action Settlement offers approved by U.S. judges

On 14^th February 2017, the U.S. federal judge decided to share the love with thousands of affected vehicle owners when it granted preliminary approval to a $1.22 billion (£979 million) settlement offer made by VW.

In a separate hearing, U.S. District Judge, Charles Breyer, also approved a $327.5 (£262) million settlement offer made by Bosch.

Things are moving forward nicely in the U.S. which is, to be fair, frustrating for the thousands of U.K. clients we act for! We’re still confident we can win the cases though. So we’ll keep fighting them!

3.0-litre diesel vehicle settlements

The $1.22 billion (£979) million settlement offer encompasses an estimated 78,000 owners of the luxurious 3.0-litre diesel vehicles. Though VW Group had already agreed and set aside $10 (£8) billion in fines for 475,000 2.0-litre vehicle owners, VW has additionally agreed to more compensation for affected 3.0-litre U.S. owners.

Affected owners of 20,000 3.0-litre models dating between 2009 and 2012 that can’t be fixed in accordance with the pollution regulations and standards in the U.S. will be offered buy-backs or trade-ins of their vehicles. According to lawyers representing affected vehicle owners, they’ll also receive compensation which could range from $7,755 to $13,880 (£6,225 to £11,142).

Those who bought 58,000 ‘newer’ vehicles will receive more compensation in the region of $7,039 to $16,114 (£5,650 to £12,933). As with the 20,000 3.0-litre models, if the said vehicles can’t be fixed in accordance with pollution regulations, claimant lawyers will seek approval of buy-backs from the courts. This could push the 3.0-litre engines up to $4 billion (£3.2bn).

VW’s reasons for the settlements

The settlement offers could be VW’s way of trying to squash the whole scandal and create a perception that they’re remorseful for their wrongdoing. This is substantiated by the fact that Judge Breyer ‘congratulated attorneys for VW’, particularly given how complicated the settlement was and how it was motivated by economic and environmental concerns.

Robert Giuffra, a VW attorney said:

“…this settlement marks an important milestone in VW’s efforts to make things right in the U.S.”

Mr Giuffra’s hit the nail on the head; it does mark an ‘important milestone’ for affected U.S. owners, but not for their affected owners globally!

VW are also in the midst of creating a fix option for all the affected vehicles. If regulators aren’t satisfied with the fix, VW could pay-out up to $4.04 (£3.2) billion in fines. A hearing has been scheduled for 11^th May where Judge Breyer will decide whether to grant final approval of the fix. Judge Breyer indicates a willingness to push forward with a solution as quickly as possible:

“when there is a situation in which there is an ongoing harm, I think courts have a responsibility to move…carefully but quickly to address that harm.”

Other settlement agreements

It seems as though VW has managed to settle most, if not all, U.S. claims arising from the emissions scandal. VW has agreed to pay a further $4.3 (£3.4) billion to settle criminal inquiries in the U.S. as well.

The settlement, which included bodies like the U.S. Federal Trade Commission and the Justice Department, also require VW to pay-out an additional $225 (£180) million in fines, and funds will be used in environmental remediation efforts in a bid to combat the adverse effects of the NOx emissions that the German automaker is being held accountable for.

Justice will be served for affected U.K. owners

Don’t be fooled that VW has ‘turned over a new leaf’ – they’re still leaving U.K. vehicle owners without redress. However, we’re representing thousands of clients in a group action to bring justice to those who have been wronged by the emissions scandal.