Volkswagen to pay $175 million to US lawyers suing over emissions
ReutersOct 15, 2016, 01.47 PM
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 US 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 US 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
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 secrsoftware in its cars to cheat exhaust emissions tests, with millions of vehicles worldwide affected. The cheating allowed VW's US 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
US District Judge
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
It still faces billions of dollars in potential fines from the
VW and US regulators are in continuing discussions over whether the automaker should agree to buy back 85,000 larger 3.0-liter
VW may have to pay additional owner attorneys' fees as part of a separate potential 3.0-liter settlement, the sources said.
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