U.S. judge signals possible approval of Volkswagen diesel buyback settlement

A Reuters report notes that a federal judge in San Francisco on Tuesday stated he was strongly inclined to approve a record-setting $10.033 billion proposed buyback and settlement deal from Volkswagen for 475,000 owners of contaminating 2.0-liter diesel automobiles.

U.S. District Judge Charles Breyer told he will issue a last decision in the matter, coming from Volkswagen’s use of prohibited software application to beat U.S. emissions testing, by October 25.

Owners, attorneys and others appeared before Breyer throughout a hearing raising arguments about why they believe Volkswagen has cannot provide sufficient cash for buybacks or reimbursing for other out-of-pocket costs like extended guarantees, maintenance and federal government licensing fees.

Breyer stated he would think about the objections prior to choosing whether to suggest any changes, however added that it was “crucial” to act quickly.

Volkswagen has accepted to spend approximately $16.7 billion to resolve its so-called U.S. “Dieselgate” expenses.

Elizabeth Cabraser, lead counsel for the owners, stated that while the buyback settlement was not perfect, it represents the very best efforts of the government, Volkswagen, court and complainants to reach a settlement that is fair, sensible and sufficient.

Volkswagen attorney Robert Giuffra defended the settlement, stating the goal was a deal that was effective and made sense.