Arizona settles suit with Volkswagen for $40 million

Arizona settles suit with Volkswagen for $40 million
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Car manufacturer Volkswagen will pay $40 million to the state of Arizona as part of a settlement over vehicle emissions violations.

The settlement announced Wednesday by Arizona Attorney General Mark Brnovich (R) includes a payback to Arizona consumers of up to $1,000 for every vehicle purchased from the company.

Arizona is the first state whose settlement with Volkswagen included restitution to purchasers.


“The Attorney General’s Office isn’t afraid to take on a fight when Arizona consumers are deceived, which is why we filed our own consumer fraud lawsuit against VW,” said Brnovich in a statement. “We believed Arizona consumers deserved more and now they’re getting more.”

The settlement addresses false claims made by Volkswagen about its products, including its Audi and Porsche lines, that claimed the cars had "clean diesel" technology when the cars were, in fact, equipped with a mechanism that falsified smog outputs.


“Volkswagen’s agreement with Arizona fully resolves all claims asserted by the state related to the diesel matter and is another important step forward for our company and our stakeholders, ” Volkwagen spokeswoman  Jeannine Ginivan said in a statement.

 Arizona decided to separately sue the car manufacturer outside of a multistate settlement that was finalized in June 2016.

Volkswagen settled a similar suit on Tuesday with the state of West Virginia for $2.6 million and reached a settlement with Maryland for $33.5 million last week.

A federal judge last year approved a settlement between Volkswagen and its customers mandating the automaker pay at least $1.22 billion to repair or buy back 3-liter diesel vehicles as part of the company’s emissions-cheating scandal.

In October 2016, the company also reached a settlement with federal and California regulators where it agreed to spend up to $14.7 billion to remediate the damage caused by its excess emissions.

Brnovich said that $20 million of the settlement will go toward funding for public education, according to a Tuscon.com report.