The German auto giant Volkswagen said on Monday that it has reached settlement with about three fourth of the total litigants in a class suit related to the emissions scandal.
The German car maker said that it had managed to arrive at mutually agreed settlements with 200,000 of the 260,000 claimants who were part of a class action lawsuit that was filed by the German consumer group VZBV in relation to the car maker allegedly violating diesel emissions norms with secretly installing an emission reading suppressing software in millions of its cars that had been sold to consumers globally.
The company added that the proposed deadline for any aggrieved Volkswagen car owner, whose vehicle had been fitted with the software by the company, for participating in the settlement has been extended to April 30. The company also said that it was also currently closely reviewing the claims of a further 21,000 cases with the possibility of making a settlement with possible payouts of between 1,350 and 6,250 euros or between $1,464.35 and $6,779.38 per car.
A total of 620 million euros will now have to be paid by Volkswagen with respect to the settlements. The company had earlier announced the decision to set aside an amount of 830 million which would be used for covering the costs of settlements with all participants in the class action case that had been filed by VZBV.
This new settlement in Germany also reflects the strong efforts that the company is making to try and make amends for its scandal to which it had admitted as having done in 2015. The company had admitted that it had installed an illegal software that could suppress emission rates so that its vehicles could easily pass through the strict diesel emission tests in the United States.
The company has also already expended an amount of more than $30 billion in terms of vehicle refits, fines and provisions.
Almost all of the owners of the cars that had been affected by the scandal had agreed to take part in a settlement in 2016 in the United States which was worth a total of $25 billion. However, the company has said that none of the owners of cars affected because of the scandal could claim compensation as there was no legal basis for the consumers to do so and that the laws in the two countries – the US and Germany were quite different in this regards.
(Source:www.nasdaq.com)
The German car maker said that it had managed to arrive at mutually agreed settlements with 200,000 of the 260,000 claimants who were part of a class action lawsuit that was filed by the German consumer group VZBV in relation to the car maker allegedly violating diesel emissions norms with secretly installing an emission reading suppressing software in millions of its cars that had been sold to consumers globally.
The company added that the proposed deadline for any aggrieved Volkswagen car owner, whose vehicle had been fitted with the software by the company, for participating in the settlement has been extended to April 30. The company also said that it was also currently closely reviewing the claims of a further 21,000 cases with the possibility of making a settlement with possible payouts of between 1,350 and 6,250 euros or between $1,464.35 and $6,779.38 per car.
A total of 620 million euros will now have to be paid by Volkswagen with respect to the settlements. The company had earlier announced the decision to set aside an amount of 830 million which would be used for covering the costs of settlements with all participants in the class action case that had been filed by VZBV.
This new settlement in Germany also reflects the strong efforts that the company is making to try and make amends for its scandal to which it had admitted as having done in 2015. The company had admitted that it had installed an illegal software that could suppress emission rates so that its vehicles could easily pass through the strict diesel emission tests in the United States.
The company has also already expended an amount of more than $30 billion in terms of vehicle refits, fines and provisions.
Almost all of the owners of the cars that had been affected by the scandal had agreed to take part in a settlement in 2016 in the United States which was worth a total of $25 billion. However, the company has said that none of the owners of cars affected because of the scandal could claim compensation as there was no legal basis for the consumers to do so and that the laws in the two countries – the US and Germany were quite different in this regards.
(Source:www.nasdaq.com)
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