WASHINGTON (Reuters) - Volkswagen AG (VOWG_p.DE), in another step to move past its costly diesel emissions cheating scandal, has agreed to pay $175 million to U.S. lawyers suing the German automaker on behalf of the owners of 475,000 polluting vehicles, two people briefed on the agreement said on Friday.

A VW sign is seen outside a Volkswagen dealership in London, Britain, November 5, 2015. REUTERS/Suzanne Plunkett/File photo

In August, the lawyers in the class action litigation sought up to $332.5 million in fees and costs for their work in a $10 billion settlement that gives U.S. owners of 2.0 liter polluting cars the ability to sell back their vehicles to Volkswagen (VW).

The latest deal with the lawyers means VW now has agreed to spend up to $16.7 billion to compensate U.S. owners and address claims from states, federal regulators and dealers arising from the “Dieselgate” scandal.

The amount to be paid out to lawyers was first reported by Reuters on Friday.

The resolution of legal fees clears another hurdle as the world’s No. 2 automaker looks to resolve all of the outstanding aspects of a scandal that disrupted its global business, hurt its reputation and led to the ouster of its chief executive officer last year.

VW in September 2015 admitted using sophisticated secret software in its cars to cheat exhaust emissions tests, with millions of vehicles worldwide affected. The cheating allowed VW’s U.S. vehicles sold since 2009 to emit up to 40 times legally allowable pollution levels.

The $175 million includes attorneys’ fees and other costs, according to the sources, who spoke on condition of anonymity.

Lawyers for the owners of polluting vehicles and a spokeswoman for Volkswagen declined to comment.

Lead plaintiff lawyer Elizabeth Cabraser, who is part of a committee of 22 lawyers overseeing the owner suits, said in August the amount sought in attorneys fees was far less than the “judicially established benchmark” for class actions of approximately 25 percent of the settlement amount.

U.S. District Judge Charles Breyer on Tuesday is set to hold a hearing in San Francisco on whether to grant final approval of the vehicle owners’ settlement announced in June, which would be the largest-ever automotive buy-back offer in the United States. Breyer must also decide whether to approve the legal fee agreement.

VW has agreed to spend up to $10.033 billion to buy back the vehicles and compensate owners. It may also offer vehicle fixes if regulators approve. Under a timetable announced this summer, regulators could approve a fix for some 2015 VW diesel vehicles as early as next month.

In addition, VW has agreed to pay up to $1.21 billion to compensate U.S. VW brand dealers, pay more than $600 million to 44 U.S. states, spend $2 billion on zero-emission vehicle promotion and infrastructure, and another $2.7 billion to offset diesel pollution.

It still faces billions of dollars in potential fines from the U.S. Justice Department in its criminal probe into VW’s cheating scandal, and must resolve the fate of larger vehicles that were not part of the initial $10 billion settlement.

VW and U.S. regulators are in continuing discussions over whether the automaker should agree to buy back 85,000 larger 3.0-liter Porsche, Audi and VW vehicles that also exceeded U.S. emission standards, and whether it should offer additional compensation to those owners.

VW may have to pay additional owner attorneys’ fees as part of a separate potential 3.0-liter settlement, the sources said. </s> WOLFSBURG (dpa-AFX) - Volkswagen AG (VKW.L, VLKAF.PK, VOW.BE) confirmed late Friday in a federal court filing that it has agreed to pay up to $1.21 billion to settle claims of its 652 U.S. dealerships related the emissions scandal.



The settlement, which reflects an average payout of $1.85 million to dealers, must still be approved by a judge in San Francisco.



The US dealers had suffered huge losses in the past year after the German carmaker's sales in US plunged after the firm admitted that it had equipped about 11 million diesel vehicles with illegal software to cheat on American pollution tests.



The latest settlement is separate from a recent $14.7 billion agreement between the company, the U.S. government, California regulators and diesel car owners.



According to a court filing Friday, 311,209 US diesel car owners among the total affected owners of 475,000, have registered for the settlement offer. Meanwhile, some 3,298 Volkswagen owners opted out of the deal.



The company has also agreed to take back the affected diesel cars still owned by dealers at the same terms offered to consumers.



Meanwhile, in late September, Volkswagen shareholders filed new lawsuits in Germany seeking a total of 8.2 billion euros or about $9.2 billion in damages, as they lost billions as the carmaker's share value plunged post the scandal. As per reports, more than 1,400 complaints were filed in a regional court in Germany's Braunschweig, near Volkswagen's headquarters in Wolfsburg.



Copyright RTT News/dpa-AFX </s> WASHINGTON (Reuters) - A U.S. judge on Tuesday approved one of the biggest corporate settlements on record, Volkswagen AG’s (VOWG_p.DE) $14.7 billion deal arising from its diesel emissions cheating scandal, and the German automaker said it would begin buying back polluting cars in mid-November.

U.S. District Judge Charles Breyer in San Francisco signed off on VW’s settlement with federal and California regulators and the owners of the 475,000 polluting diesel vehicles in a pivotal moment for the world’s No. 2 automaker as it tries to move past a scandal that has engulfed it for more than a year.

VW admitted in September 2015 to installing secret software in its diesel cars to cheat exhaust emissions tests and make them appear cleaner in testing than they really were. In reality, the vehicles emitted up to 40 times the legally allowable pollution levels.

Volkswagen CEO Matthias Mueller told reporters in Berlin that Breyer’s approval was “an important milestone for us on the way towards clearing up the problem that we caused some time ago.” Hinrich Woebcken, president and CEO of Volkswagen Group of America, pledged to carry out the terms “as seamlessly as possible.”

Breyer turned away objections from car owners who thought the settlement did not provide enough money, saying it “adequately and fairly compensates” them. Owners will get the pre-scandal “trade in” value of the vehicle and $5,100 to $10,000 in additional compensation.

“Given the risks of prolonged litigation, the immediate settlement of this matter is far preferable,” Breyer wrote.

Volkswagen agreed to spend up to $10.033 billion on the buybacks and owner compensation and $4.7 billion on programs to offset excess emissions and boost clean-vehicle projects.

The settlement was reached with the U.S. Justice Department, Federal Trade Commission, the state of California and vehicle owners who had filed a class action lawsuit against VW. Volkswagen has admitted to misleading regulators and still faces an ongoing criminal investigation.

It represented the largest civil settlement worldwide ever reached with an automaker accused of misconduct.

While huge, the approved deal was still smaller than the $246 billion settlement reached by cigarette makers with 46 U.S. states in 1998 and the $53 billion by BP to address costs and penalties arising from the 2010 Gulf of Mexico oil spill.

An American flag flies next to a Volkswagen car dealership in San Diego, California, U.S. September 23, 2015. REUTERS/Mike Blake/File Photo

In total, Volkswagen has agreed to date to spend up to $16.5 billion in connection with the scandal, including payments to dealers, states and attorneys for owners. The scandal rattled VW’s global business, harmed its reputation and prompted the ouster of its CEO.

The settlement covers 2.0-liter polluting diesel Beetle, Golf, Jetta, Passat and Audi A3 cars from the 2009 through 2015 model years. Up to 490,000 people will take part in the settlement because some vehicles had multiple owners.

Volkswagen spokeswoman Jeannine Ginivan said the automaker expects to begin buying back vehicles in mid-November. VW has hired 900 people, including one to be stationed at each dealership, to handle buybacks.

MORE COSTS FOR AUTOMAKER

VW still faces billions more in costs to address 85,000 polluting 3.0-liter vehicles and Justice Department fines for violating clean air laws. It also faces lawsuits from at least 16 U.S. states for additional claims that could hike the company’s overall costs.

Last month, a Volkswagen engineer pleaded guilty in Detroit to helping the company evade U.S. emission standards. His lawyer said he would cooperate with federal authorities in their criminal probe.

Kathryn Phillips, California director for the Sierra Club environmental group, said Volkswagen broke the law and that “Judge Breyer is making them pay the price. Volkswagen chose to poison our families with dangerous pollution just to pad its pocketbook.”

“Today is a landmark day, when this innovative settlement can be put into action, investing billions of dollars into public health protections to remedy these serious violations,” added Cynthia Giles, U.S. Environmental Protection Agency assistant administrator.

VW will provide $2 billion over 10 years to fund programs to promote electric vehicle charging infrastructure, development of zero-emission ride-sharing fleets and other efforts to boost sales of cars that do not burn petroleum.

Volkswagen has been in intensive talks over how much compensation it may offer owners of the larger 3.0-liter diesel Porsche, Audi and Volkswagen vehicles that emit up to nine times legally allowable emissions and whether it will offer buybacks for some of the polluting SUVs. No final agreement has been reached. Volkswagen faces a Nov. 3 court hearing to update the court on those vehicles’ status.

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Volkswagen agreed to make up to $1.21 billion in payments to 652 U.S. VW brand dealers and $600 million to 44 U.S. states to address some state claims.

Nearly 340,000 owners have registered to take part in the settlement. About 3,500 owners have opted out. Volkswagen must fix or buy back 85 percent of the 475,000 vehicles under the agreement by June 2019 or face additional costs.

Owners have until September 2018 to submit paperwork to sell back vehicles. VW will have to destroy repurchased vehicles unless it wins approval for fixes. </s> It represented one of the biggest corporate settlements of any kind. The action by U.S. District Judge Charles Breyer in San Francisco marked a pivotal moment for VW as it aims to move past a scandal that has engulfed the company since it admitted in September 2015 to installing secret software in diesel cars to cheat exhaust emissions tests and make them appear cleaner than they really were.

Hinrich Woebcken, president and CEO of Volkswagen Group of America Inc, called final approval of a settlement first announced in June "an important milestone in our journey to making things right in the United States," and pledged to carry out the terms "as seamlessly as possible."

Breyer turned away objections from car owners who thought the settlement did not provide enough money, saying it "adequately and fairly compensates" them. In addition to the pre-scandal "trade in" value of the vehicle, owners will receive $5,100 to $10,000 in additional compensation.

"Given the risks of prolonged litigation, the immediate settlement of this matter is far preferable," Breyer wrote.

The settlement was reached with the U.S. Justice Department, Federal Trade Commission, the state of California and vehicle owners who had filed a class action lawsuit against the world's No. 2 automaker. VW has admitted to misleading regulators and still faces an ongoing criminal investigation.

Volkswagen agreed to spend up to $10.033 billion on the buybacks and owner compensation and $4.7 billion on programs to offset excess emissions and boost clean-vehicle projects.

VW may also be allowed to repair vehicles if regulators approve fixes. The affected vehicles emit up to 40 times legally allowable pollution levels.

It represented the largest civil settlement worldwide ever reached with an automaker accused of misconduct.

While huge, the approved deal was still smaller than the $246 billion settlement reached by cigarette makers with 46 U.S. states in 1998 and the $53 billion by BP to address costs and penalties arising from the 2010 Gulf of Mexico oil spill.

In total, Volkswagen has agreed to date to spend up to $16.5 billion in connection with the scandal, including payments to dealers, states and attorneys for owners. The scandal rattled VW's global business, harmed its reputation and prompted the ouster of its CEO.

The settlement covers 2.0-liter polluting diesel Beetle, Golf, Jetta, Passat and Audi A3 cars from the 2009 through 2015 model years. Up to 490,000 people will take part in the settlement because some vehicles had multiple owners.

Volkswagen spokeswoman Jeannine Ginivan said the automaker expects to begin buying back vehicles in mid-November. VW has hired 900 people, including one to be stationed at each dealership, to handle buybacks.

VW still faces billions more in costs to address 85,000 polluting 3.0 liter vehicles and Justice Department fines for violating clean air laws. It also faces lawsuits from at least 16 U.S. states for additional claims that could hike the company's overall costs.

Last month, a Volkswagen engineer pleaded guilty to helping the company evade U.S. emission standards. His lawyer said he would cooperate with federal authorities in their criminal probe.

In 2013, a non-profit group commissioned researchers at West Virginia University to test diesel car emissions, and found excess emissions in two VW diesels. After the U.S. Environmental Protection Agency and California spent more than a year trying to understand the cause, VW admitted last year it secretly installed software to turn off emissions equipment in real-world driving.

"Today is a landmark day, when this innovative settlement can be put into action, investing billions of dollars into public health protections to remedy these serious violations," Cynthia Giles, the EPA's assistant administrator, said.

VW will provide $2 billion over 10 years to fund programs to promote construction of electric vehicle charging infrastructure, development of zero-emission ride-sharing fleets and other efforts to boost sales of cars that do not burn petroleum.

Volkswagen has been in intensive talks over how much compensation it may offer owners of the larger 3.0 liter diesel Porsche, Audi and Volkswagen vehicles that emit up to nine times legally allowable emissions and whether it will offer buybacks for some of the polluting SUVs but no final agreement has been reached. Volkswagen faces a Nov. 3 court hearing to update the court on those vehicles' status.

Volkswagen agreed to make up to $1.21 billion in payments to 652 U.S. VW brand dealers and $600 million to 44 U.S. states to address some state claims.

Nearly 340,000 owners have registered to take part in the settlement. About 3,500 owners have opted out. Volkswagen must fix or buy back 85 percent of the 475,000 vehicles under the agreement by June 2019 or face additional costs. </s> SAN FRANCISCO: A US judge on Tuesday granted final approval for a $14.7 billion class action settlement in Volkswagen’s diesel emissions cheating scandal, the largest such automaker settlement in history.

The buyback deal at the same time also resolved some claims brought by US and California environmental regulators who had sought penalties for Volkswagen’s violations of pollution laws.

“Final approval of the 2.0 liter TDI settlement is an important milestone in our journey to making things right in the United States and we appreciate the efforts of all parties involved in this process,” Hinrich Woebcken, president and CEO of Volkswagen Group of America, said in a statement.

The settlement offers compensation to nearly a half-million owners of polluting Volkswagen and Audi diesel-powered vehicles in the US which the German automaker has admitted configuring to deceive emissions tests. This allowed some cars to emit almost 40 times the permissible levels of harmful nitrogen oxides.

Owners of 2.0 liter diesel-powered cars will be eligible for buybacks, penalty-free lease terminations or free modifications to fix the vehicles’ emissions. All participants will also receive cash payments.

In addition to $10 billion for compensation to owners, Volkswagen will create a $2.7 billion fund for environmental remediation, and provide $2 billion to promote the use of “zero emissions” vehicles within the United States.

“The settlement adequately and fairly compensates class members,” US District Judge Charles Breyer wrote in an opinion approving the deal.

“While plaintiffs might ultimately prevail on their claims, the settlement provides benefits much sooner than if litigation were to continue. Moreover, litigation would cause additional environmental damage that the settlement otherwise reduces.”

Breyer had granted preliminary approval for the settlement in July, praising the “enormous efforts” by all sides to reach an agreement and avoid a trial.

Volkswagen’s parallel agreement with US authorities will require it to modify or remove 85 percent of the vehicles from the roads by June 2019 or face steep additional penalties.

California will receive about $1.2 billion to mitigate environmental damage caused by the pollution, of which $381 million will fund projects to reduce smog, such as creating incentives for cleaner heavy-duty vehicles, according to the California Air Resources Board.

“Today is a landmark day, when this innovative settlement can be put into action, investing billions of dollars into public health protections to remedy these serious violations,” Cynthia Giles, head of enforcement at the US Environmental Protection Agency, said in a statement.

Breyer’s rulings were a major step in the German automaker’s efforts to move past the scandal and revive sagging sales after admitting to the deceptive practices in the production of some 11 million vehicles worldwide.

But the costs of the scandal have been considerable. Volkswagen reported a 1.6 billion euro ($1.74 billion) net loss for 2015, its first in more than two decades. The company has booked 18 billion euros to cover repairs, buy-backs and legal costs for the scandal, but commentators have said the final amount could be much higher.

The company is in talks with US federal prosecutors to settle criminal allegations related to the emissions cheating. Prosecutors last month indicted James Liang, a Volkswagen engineer, who has pleaded guilty and agreed to cooperate as the United States builds its case.

Volkswagen also still needs to conclude a separate settlement in the United States concerning about 80,000 Volkswagen, Audi and Porsche cars with 3.0 liter engines equipped with the emissions cheat devices.

The company has been far less generous in Europe, pledging to bring affected cars there into compliance by next year. The company also faces billions of dollars in damage claims from investors. AFP </s> A U.S. federal judge on Tuesday approved Volkswagen AG’s record-setting $14.7-billion (U.S.) settlement with regulators and owners of 475,000 polluting diesel vehicles, and the German auto maker said it would begin buying back the vehicles in mid-November.

The action by U.S. District Judge Charles Breyer in San Francisco marked the latest development in a scandal that has rocked VW since it admitted in September 2015 using secret software in its diesel cars to cheat exhaust emissions tests and make them appear cleaner than they really were.

Under the settlement, Volkswagen agreed to spend up to $10.033-billion on the buybacks and owner compensation and $4.7-billion on programs to offset excess emissions and boost zero-emission vehicle infrastructure and other clean vehicle projects.

The affected vehicles emit up to 40 times legally allowable pollution levels. Volkswagen may also be allowed to repair vehicles if regulators approve fixes.

In total, Volkswagen has agreed to date to spend up to $16.5-billion in connection with the diesel emissions scandal, including payments to dealers, states and attorneys for owners. The scandal rattled VW’s global business, harmed its reputation and prompted the ouster of its CEO.

The world’s second-largest auto maker still faces billions more in costs to address 85,000 polluting 3.0 litre vehicles and U.S. Justice Department fines for violating clean air laws. It also faces lawsuits from at least 16 U.S. states for additional claims that could hike the company’s overall costs. </s> U.S. federal judge approved Volkswagen's record-setting $14.7-billion settlement with regulators and owners of 475,000 polluting diesel vehicles. Jeanne Yurman reports. </s> 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. </s> In August, the lawyers in the class action litigation sought up to $332.5 million in fees and costs for their work in a $10 billion settlement that gives U.S. owners of 2.0 liter polluting cars the ability to sell back their vehicles to Volkswagen.

The latest deal with the lawyers means VW has now agreed to spend up to $16.7 billion to compensate U.S. owners and address claims from states, federal regulators and dealers arising from the "Dieselgate" scandal.

The resolution of legal fees clears another hurdle as the world's No. 2 automaker looks to resolve all of the outstanding aspects of a scandal that disrupted its global business, hurt its reputation and led to the ouster of its CEO last year.

VW in September 2015 admitted using sophisticated secret software in its cars to cheat exhaust emissions tests, with millions of vehicles worldwide affected. The cheating allowed VW's U.S. vehicles sold since 2009 to emit up to 40 times legally allowable pollution levels.

The $175 million includes attorneys' fees and other costs, according to the sources, who spoke on condition of anonymity.

Lawyers for the owners of polluting vehicles and a spokeswoman for Volkswagen declined to comment.

U.S. District Judge Charles Breyer on Tuesday is set to hold a hearing in San Francisco on whether to grant final approval of the vehicle owners' settlement announced in June, which would be the largest-ever automotive buy-back offer in the United States.

VW has agreed to spend up to $10.033 billion to buy back the vehicles and compensate owners. It may also offer vehicle fixes if regulators approve. Under a timetable announced this summer, regulators could approve a fix for some 2015 VW diesel vehicles as early as next month.

In addition, VW has agreed to pay up to $1.21 billion to compensate U.S. VW brand dealers, pay more than $600 million to 44 U.S. states, spend $2 billion on zero-emission vehicle promotion and infrastructure, and another $2.7 billion to offset diesel pollution.

It still faces billions of dollars in potential fines from the U.S. Justice Department in its criminal probe into VW's cheating scandal, and must resolve the fate of larger vehicles that were not part of the initial $10 billion settlement.

VW and U.S. regulators are in continuing discussions over whether the automaker should agree to buy back 85,000 larger 3.0-liter Porsche, Audi and VW vehicles that also exceeded U.S. emission standards, and whether it should offer additional compensation to those owners.
Volkswagen agrees to pay $175 million to United States lawyers suing the German automaker on behalf of the owners of 475,000 polluting vehicles.