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

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.

Heidi Waggoner
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