Kansas residents who bought Volkswagen vehicles with 2.0-liter diesel engines are eligible to receive an estimated $11.1 million from Volkswagen as part of a legal settlement, according to Kansas Attorney General Derek Schmidt.
This monetary relief is in addition to an option to sell back their vehicle or have it modified to correct the problem, Schmidt stated.
The settlement with the attorneys general, together with related settlements with the federal government and private litigants announced today, resolve consumer protection claims brought against the car manufacturer by Schmidt, the attorneys general of more than 40 other states and territories, three federal agencies, and private class counsel. The company was accused of violating state laws prohibiting unfair or deceptive trade practices by marketing, selling and leasing diesel vehicles equipped with illegal and undisclosed defeat-device software.
“Honest information is critical to any consumer transaction,” Schmidt said, “but especially when making a major purchase like a car. This settlement will allow Kansas consumers to receive restitution from VW for its dishonest claims and will allow vehicles to be sold back to the company or modified to meet emissions standards.”
Under the settlements, Volkswagen is required to implement a restitution and recall program for more than 475,000 owners and lessees of 2.0-liter diesel vehicles, of the model year 2009 through 2015 listed in the chart below at a maximum cost of just over $10 billion. This includes more than 2,000 vehicles in Kansas.
Once the consumer program is approved by the court, affected Volkswagen owners will receive restitution payment of at least $5,100 per vehicle and also a choice between:
• A buy back of the vehicle (based on pre-scandal NADA value); or
• A modification to reduce NOx emissions provided that Volkswagen can develop a modification acceptable to regulators. Owners will still be eligible to choose a buyback in the event regulators do not approve a fix. Owners who choose the modification option would also receive an Extended Emission Warranty and a Lemon Law-type remedy to protect against the possibility that the modification causes subsequent problems.
In addition, Volkswagen is required to make a payment to an environmental mitigation fund that states may access for specified environmental projects, to settle states’ fraud claims, and to reimburse the states for the cost of the investigation.
The consumer relief applies only to Volkswagen vehicles with 2.0-liter engines. Vehicles with 3.0-liter engines are not covered, although the settlement does not diminish any legal rights owners of those vehicles may have. Additional information is available on the attorney general’s consumer protection website at www.InYourCornerKansas.org.
To see a list of the VW vehicles that are covered by this settlement, visit http://ag.ks.gov/in-your-corner-kansas/resources/consumer-news/2016/06/28/volkswagen-settlement.