Volkswagen’s U.S. unit will pay $3.5 million to resolve a law suit by the state of Illinois against the German automaker for tampering with vehicle emissions controls in diesel vehicles.
The U.S. Supreme Court rejected Volkswagen’s bid last month to avoid lawsuits filed by officials in other states seeking damages. The company earlier had warned of potential astronomical damages in the state and local suits.
“Volkswagen intentionally tampered with vehicles it claimed to be environmentally friendly but we’re actually releasing harmful emissions.”Attorney General Kwame Raoul
The company said that the agreement will resolve the issue and they will focus on building future sustainable mobility.
Volkswagen previously settled U.S. actions prompted by the emissions scandal for more than $20 billion, but that did not shield it from local and state government liability, an appeals court found.
Volkswagen also installed software updates after sale after equipping vehicles with “defeat devices” before they were sold which was the conduct at issue in the Illinois suit.
In September, Volkswagen agreed to pay $1.5 million to settle environmental claims with the states of New Hampshire and Montana.
In 2017, Volkswagen pleaded guilty to fraud, obstruction of justice and falsifying statements as part of a $4.3 billion settlement reached with the U.S. Justice Department over the automaker’s diesel emissions scandal.