Facts

Plaintiffs were Volkswagen-branded franchise dealers who, via multidistrict litigation, sued Volkswagen relating to its use of defeat devices on model year 2009 through 2015 Volkswagen and Audi diesel vehicles.

PLAINTIFFS' CONTENTIONS:
Plaintiffs contended that Volkswagen marketed its vehicles as being environmentally friendly and fuel efficient even though it had installed defeat devices in the vehicles as a way to evade the Environmental Protection Agency and the California Air Resources Board emissions test procedures. Specifically, the devices produced false regulation-compliant results. Nearly 600,000 diesel vehicles equipped with these devices were sold over the relevant period.

DEFENDANT'S CONTENTIONS:
Without conceding liability, Volkswagen decided to settle this class action to avoid the time, expense, and risk associated with further litigation, and to put these issues behind it.

Result

Pursuant to the settlement reached between the parties, Volkswagen will pay approximately 650 authorized Volkswagen dealers in the United States an average cash payment of $1.85 million, for a total maximum settlement amount of $1.67 billion.

Other Information

FILING DATE: Dec. 8, 2015.