Automakers settle fuel efficiency class action for $96M

More than 100,000 owners of certain vehicles in the emissions scandal in which automakers overstated the fuel efficiency of their cars resolved their claims Friday for roughly $96.5 million.

The class members drove vehicles sold by Volkswagen Group of America, Inc., Audi AG, Porsche AG and Bentley Motors Limited, all of which got up to one mile per gallon less than what was represented.

Elizabeth Cabraser, representing the car owners, said the settlement is an "outstanding result" in the resolution of litigation. U.S. District Judge Charles Breyer has maintained settlements thus far have been "fair, reasonable, and adequate."

The automakers installed a software program in their vehicles that inflated fuel economy ratings, deceiving federal regulators, according the complaint.

Vehicle owners paid more in fuel because of the discrepancy between the reported and actual miles per gallon their cars got.

Plaintiffs alleged violations of the Racketeer Influences and Corrupt Organizations Act and fraud, among other state-specific claims. They will get an estimated $500 to $2,300 through a streamlined claims process. In re: Volkswagen 'Clean Diesel' Marketing, Sales Practices, and Products Liability Litigation, 15-MD-02672 (N.D. Cal., filed Dec. 8, 2015).

Attorneys fees will not be taken out of the settlement, according to the proposed settlement order.

A global settlement between Volkswagen and automobile dealers as well as vehicle owners impacted by the scheme to falsely pass emissions tests was reached in 2017 for an estimated $4 billion.

-- Winston Cho