Lawyers Seek Another $26 Million From Volkswagen Over Fuel Economy Breach
Lawyers who were representing the 98,000 owners of Volkswagen AG U.S. vehicles against the company for overstating the fuel economy will now reach out to a U.S. judge asking USD 26 million as compensation for attorney’s fees and other legal costs. As reported by Reuters, the details were taken from the court documents. After it was found that the software in vehicles was overstating the actual performance values, the Environment Protection Agency on Friday asked Volkswagen AG to drop greenhouse gas emissions credits and decrease the fuel economy ratings on the concerned vehicles.
On Friday, VW had stated that it had reached an agreement for paying a total of USD 96.5 million to the owners of the 98,000 vehicles that were affected by the overstated fuel ratings. The ones who will receive the reimbursement are expected to receive it as a sum that will range from USD 518.40 to USD 2,332.80 per vehicle, depending on the duration of ownership and the model. The new demand for USD 26 million is separate and will breakdown as USD 23.1 million in fees and the remaining USD 2.1 million in expenses, as per the court filings. The settlement has come after 15 months of lengthy negotiations.
It isn’t the first instance of VW AG getting accused of faulty fuel ratings. Back in 2015, the German automakers were found guilty of resorting to usage of illegal software for getting through with the U.S. pollution tests. The mistake has cost VW AG around USD 33 billion so far, as the company had to pay fines, buybacks, and penalties. In the same lawsuit, lawyers who made a similar demand for expenses received a massive sum of USD 352 million in fees and costs. In May, the company had even set aside another USD 5.5 billion in Contingent Liabilities.