VW reaches $1.2 bil­lion set­tle­ment with deal­ers

Daily Local News (West Chester, PA) - - WEATHER -

SAN FRAN­CISCO >> Volk­swa­gen has agreed to pay its U.S. deal­ers up to $1.2 bil­lion to com­pen­sate them for losses they said they suf­fered as a re­sult of the com­pany’s emis­sions cheat­ing scan­dal, ac­cord­ing to a set­tle­ment agree­ment filed Fri­day in fed­eral court in San Fran­cisco.

Un­der the terms of the deal, deal­ers can choose to opt out and pur­sue their own law­suits against Volk­swa­gen. A judge still has to ap­prove the set­tle­ment be­fore it can go into ef­fect.

Volk­swa­gen pre­vi­ously reached an agree­ment with at­tor­neys for car owners. That deal calls for it to spend up to $10 bil­lion buy­ing back or re­pair­ing about 475,000 ve­hi­cles in­volved in its scan­dal and pay­ing their owners an ad­di­tional $5,100 to $10,000 each.

De­tails about the ve­hi­cle re­pairs have not been fi­nal­ized.

At­tor­neys for ve­hi­cle owners said in a court fil­ing on Fri­day that more than 311,000 peo­ple have reg­is­tered for the deal and less than 3,300 peo­ple have opted out. “There is re­sound­ing sup­port for this con­sumer class set­tle­ment and the sub­stan­tial ben­e­fits it pro­vides,” El­iz­a­beth Cabraser, lead at­tor­ney for Volk­swa­gen owners, said in a state­ment.

The set­tle­ment also in­cludes $2.7 bil­lion for un­spec­i­fied en­vi­ron­men­tal mit­i­ga­tion and an ad­di­tional $2 bil­lion to pro­mote zero-emis­sions ve­hi­cles.

U.S. District Court Judge Charles Breyer gave the deal pre­lim­i­nary ap­proval in July, and he is ex­pected to make a fi­nal de­ci­sion on Oct. 18.

The deal does not cover about 85,000 more-pow­er­ful Volk­swa­gens and Audis with 3-liter en­gines also caught up in the emis­sions scan­dal.

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