VW settlement includes $87M for Show-Me State

Missouri is set to receive more than $87 million as part of a nearly $15 billion nationwide settlement with German automaker Volkswagen AG (OTC: VLKAY).  

The settlement resolves claims brought by a multitstate and federal investigation that the company used devices to cheat emissions tests in its 2009-15 model Volkswagen and Audi 2-liter diesel vehicles and 2009-16 model Volkswagen, Audi and Porsche 3-liter diesel vehicles. The investigation also found Volkwagen covered up its illegal actions - allowing vehicles to exceed federal and state pollution standards by a factor of 40 - during a 17-month period, according to a news release.

“It is important that Volkswagen be held responsible for its decision to perpetrate this fraud on the people of Missouri,” state Attorney General Chris Koster said in the release. “Volkswagen’s ‘clean diesel’ marketing campaign specifically targeted environmentally conscious consumers, while selling consumers a product that would pollute up to 40 times the legal limit.

“Such flagrant fraud is unacceptable.”

The majority of funding headed to Missouri is earmarked for consumers. Volkswagen is ordered to pay more than $40 million in consumer restitution to buy back or repair vehicles. The agreement provides relief for more than 8,750 cars sold in Missouri, and the company agreed to pay the owners a minimum of $5,100 in restitution.

Missouri’s portion of the settlement also includes up to $39 million for environmental air-remediation programs during the next few years and over $8 million for violations of the state’s Merchandising Practices Act, according to the release.

At VWCourtSettlement.com, vehicle owners and lessees can choose a buyback or modification of their car.