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VW to pay $1.5 million to settle NH, Montana diesel claims By Reuters


© Reuters. FILE PHOTO – A Volkswagen logo is displayed on a vehicle parked in Paris on July 9, 2020. REUTERS/Christian Hartmann/File Photo

WASHINGTON (Reuters) – Volkswagen AG (OTC:) on Monday said it has agreed to pay $1.5 million to settle environmental claims with the states of New Hampshire and Montana over post-vehicle updates of software emissions arising from the 2015 diesel cheating scandal.

This settlement of $280 per vehicle represents a fraction of the total liability that Volkswagen AG (OTC:) faces in relation to whether or not states have the ability to enforce emissions laws regarding updates after vehicles were sold.

New Hampshire will be paid $1.15 million by VW. The company also pledged to create another high-speed charging station within the state before 2024. VW agreed to $357,280 for Montana.

VW requested the U.S. Supreme Court reverse the Ohio court’s ruling, which allowed for the state of diesel emission lawsuit to continue.

VW said in court papers Ohio’s claims “could total $350 million per day, or more than $127 billion per year, over a multi-year period.” Settlements reached with two states amount to approximately $280 per vehicle.

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There are approximately 47,000 vehicles in the three remaining states and two other counties who have sued.

Volkswagen (DE:), although it had previously settled U.S. lawsuits arising out of the emissions scandal at a total cost exceeding $20 billion, that didn’t protect the company from liability in the local or state governments, the appeals courts found.

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