VW Franchise Dealers Reach Proposed Settlement with Volkswagen Following Diesel Emissions Scandal

08/25/2016

Proposed settlement includes fund to be paid to VW dealers within 18 months

SAN FRANCISCO Attorneys at Hagens Berman representing VW dealers confirmed they have reached a proposed settlement with Volkswagen that creates a settlement fund and provides additional benefits to all franchise dealers in the United States. Funds under the proposed settlement would be paid out within 18 months. The payout formula is still under refinement and will be fully disclosed in the coming weeks. Any particular franchise dealer’s actual payout under the proposed settlement will depend on the size of the dealership and the size of the market it serves, among other factors.

Under the proposed settlement, Volkswagen also agrees to repurchase unfixable, used diesel vehicles on a dealer’s lot under the identical terms that such cars must be repurchased from consumers and independent dealers. Attorneys for the dealerships and Volkswagen were careful to ensure that dealers did not get any special treatment as compared to consumers for the affected cars on their lots.

“These 652 mostly small business owners were blindsided by the diesel emissions scandal and have seen the value of their businesses plummet,” said Steve Berman, Hagens Berman’s Managing Partner. “Our investigation has uncovered no evidence that VW dealers had any idea that VW was selling them cars that had defeat devices installed. We are pleased to have reached an agreement with VW under which these businesses can recover and move forward, continuing to employ thousands of Americans, while working proactively with Volkswagen to facilitate the terms of the Consumer Settlement reached last June.”

The proposed agreement will go before U.S. District Court Judge Charles Breyer in mid-September for preliminary approval. If approved, notice of the settlement will go to dealers by express mail.

Claims against Volkswagen AG parts supplier Robert Bosch GmbH and its US subsidiary have not been resolved and will continue in the litigation.

If you own a Volkswagen dealership and have questions about the settlement, call Hagens Berman at 1-888-381-2889. Attorneys are available to answer your questions. Find out more about the lawsuit.

Attorney Steve Berman is available for media interviews by calling 206-268-9318.

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About Hagens Berman
Hagens Berman Sobol Shapiro LLP is a consumer-rights class-action law firm with offices in 10 cities. The firm has been named to the National Law Journal’s Plaintiffs’ Hot List eight times. More about the law firm and its successes can be found at www.hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

Contacts
Heidi Waggoner
[email protected]
206-268-9318


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10/30/17: Bosch Motion to Dismiss Denied

Today federal judge Charles Breyer denied, in its entirety, Bosch’s attempt to dismiss franchise dealers’ claims that Bosch engaged in a RICO conspiracy with VW relating to the diesel emissions scandal. The Court’s order greenlights the dealers’ claims to move into the next step of the litigation, which is discovery. In this stage, dealers will seek extensive information from Bosch concerning its role in the development of the hardware and software that was used as a defeat device in approximately 580,000 VW diesel cars that were sold in the United states between 2009 and 2015.

01/23/17: $1.6 Billion Settlement Approved

A federal judge today granted final approval for a $1.67 billion settlement for hundreds of Volkswagen-branded franchise dealers following the automaker’s Dieselgate scandal that blindsided dealers, according to Hagens Berman.

Read the press release »
Download the court's order  »

 

12/12/16: Motion for Final Approval

Hagens Berman filed a motion for final approval of the settlement.


 

10/18/16: Order Granting Preliminary Approval

On October 18, 2016, the U.S. District Court for the Northern District of California, in San Francisco, granted preliminary approval of the proposed Franchise Dealer Class Action Settlement. Settlement notices will now be sent to all franchise dealers as of September 18, 2016. 
 

08/25/16: Proposed Settlement

VW franchise dealers have reached a proposed settlement with Volkswagen that creates a settlement fund and provides additional benefits to all franchise dealers in the United States. Funds under the proposed settlement would be paid out within 18 months. The payout formula is still under refinement and will be fully disclosed in the coming weeks. Any particular franchise dealer’s actual payout under the proposed settlement will depend on the size of the dealership and the size of the market it serves, among other factors.