Crystal Favati BUA131 September 30, 2017 Volkswagen Class Action Lawsuit In the case Volkswagen "Clean Diesel" MDL, filed on September 25, 2015, Volkswagen had installed software programs on numerous vehicles that had 2.0-liter diesel engines to cheat the U.S. emissions tests. The cars with the software installed were marketed to be better for the environment and have high-performance. What was not marketed was that the software had a highly sophisticated algorithm that turned on emissions controls during emissions tests to meet the permitted standards and turned off during normal driving (Rosen Law, 2015). The vehicles would emit up to 40 times the pollution than normal standards would permit while driving. Clifford Atiyeh with the Car …show more content…
Not only will it be financial, but it will take a toll on business morale for some time to come. Numerous company officials have resigned or have admitted to knowing what had happened in the scandal. There has also been 340,000 owners and lessees who have sent in the registration forms that are part of the government negotiated compensation agreement. This agreement stats that Volkswagen has to buy back the owners and lessees cars. The Volkswagen diesel scandal comes on the heels of the General Motors and Toyota scandals. Both manufactures did not have good outcomes and the same could be said for Volkswagen. Everything had boiled down to is that all have put the American public at risk due to misleading and unsafe vehicles. The findings of the case were in favor of the plaintiffs by U.S. District Court Judge Charles Breyer on October 25, 2016. The final settlement is for $14.7 billion in buyback programs. TDI owners can sell their cars back to Volkswagen for between $12,500 and $44,000 if purchased before September 17, 2015. The price is dependent upon different factors including model, trim, and age. A cash value of $2600 and $4900 will be given to lessees, and car owners and lessees will be eligible if they sold their car or quit their lease before June 28, 2016. Volkswagen had until June of 2019 to buy back 85 percent of the cars. (Atiyeh, …show more content…
Department of Justice first sued Volkswagen on behalf of the EPA, the ruling in the different court systems has already been given. By August of this year, some of the U.S. Department of Justice final ruling have been $4.3 billion in criminal and civil penalties, $14.7 billion in settlements to three different federal agencies for excessive diesel emissions under the Clean Air Act, a $10 billion buyback program, $225 million for projects to reduce NOx emissions, and over eight executives have been charged with numerous crimes. Civil and state level cases have not been finalized as of this time but is estimated to end up being in the billions (Atiyeh,