VW and Audi have reached an $85 million settlement in principal in Texas due to diesel emissions cheating that was first uncovered in 2015.
The Texas Supreme Court confirmed earlier this month that the state’s environmental lawsuit against VW and Audi could proceed. According to Texas attorney general Ken Paxton, the settlement requires the two car manufacturers to pay an $85 million civil penalty for their unlawful actions.
“If a company thinks they will avoid accountability when they violate Texas laws, endanger Texans, and pollute our environment, they’re dead wrong,” Paxton said in a statement. “Volkswagen and Audi are finding that out the hard way, and now they are paying the price. Not only did they break our environmental laws by employing illegal technology, but they also tried to avoid responsibility in Texas courts. My office successfully stopped those efforts.”
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VW and Audi continue to pay a hefty price for dieselgate, even though it has been 8 long years since the scandal rocked the automotive industry. VW has previously settled legal action from the U.S. government and paid more than $20 billion in fines, penalties, and damages in the U.S. but these did not protect it from local and state government liability, Reuters reports.
“This settlement in principle will help guarantee that tens of millions of dollars are made available to benefit Texans, and it will send a clear signal discouraging any company contemplating illegal activity in the Lone Star State,” attorney general Ken Paxton added.
Twelve months ago, Volkswagen agreed to pay £193 million ($238 million) to settle out of court with owners of VW Group cars in the UK and Wales affected by dieselgate. This settlement came after lawyers brought around 91,000 claims against the VW Group and VW dealers, demanding compensation for vehicles equipped with devices that cheated emissions tests.
