Volkswagen to Pay U.S. Dealers $1.2 Billion Over Emissions Scandal
Volkswagen has agreed to pay its U.S. dealers up to $1.2 billion to compensate them for losses suffered as a result of the company’s emissions cheating scandal, according to a settlement agreement filed Friday in federal court in San Francisco.
The dealers are expected to receive about $1.85 million each, but they can choose to opt out of the deal and pursue their own lawsuits against Volkswagen. A judge still has to approve the settlement before it can go into effect.
Volkswagen’s U.S. sales have fallen since the scandal first came to light a year ago, and the agreement will help compensate dealers for what they said was a loss in value of their dealerships.
Several Los Angeles-area Volkswagen dealerships declined to comment about the settlement, with some referring questions to their attorneys.
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