[V]olkswagen has offered the state of Vermont two separate settlements for alleged environmental violations and consumer protection violations as part of more than $15 billion in national settlements.
In exchange for not suing under certain environmental laws, Vermont can accept up to $17.8 million from Volkswagen. If the state agrees not to sue under the Vermont Consumer Protection Act, the state can accept an additional $2.9 million.
Also, owners of certain diesel Volkswagens and Audis built between 2009 and 2015 will be allowed to sell the cars back to the company for the Kelley Blue Book price or have the company fix them. Owners would also receive at least $5,100 as restitution for the alleged fraud, and they wouldn’t be allowed to sue the company.
The automobile giant told international news media in September that it built certain vehicles with “defeat devices” designed to make the cars appear environmentally friendly when they go for inspection. In reality, the cars were giving off substantial emissions.
The cars were sold under a “clean diesel campaign,” and consumers say they bought the vehicles in part because they would be environmentally friendly. About 3,000 of these cars are registered in Vermont.
“Volkswagen’s conduct in this case before Sept. 15 of last year is really outrageous,” Attorney General William Sorrell said Tuesday after announcing the proposed settlements.
“This was not accidental conduct,” Sorrell said. “This was intentional defrauding of laws and misleading of consumers. … It’s serious, and as long as I’m attorney general, I’m prepared to treat is as a very serious violation.”
The federal government filed civil charges against Volkswagen in California. Although many states sued the company, Vermont has not and instead participated in a multistate investigation. At least two consumer-led class-action suits popped up.
Sorrell said his office has not decided whether to accept the settlements. He said the $17.8 million comes with strings saying the money can be spent only on certain projects, so he needs to check with the Agency of Natural Resources to see if the state would be able to use the full amount.
Sorrell said the state also will look at whether it should sue under the Vermont Consumer Protection Act. He said his staff needs to look at the penalties for each individual advertisement Volkswagen played in Vermont to see whether the proposed $2.9 million is adequate to address any potential fraud violations.
If the state accepts the two settlements, it will still be able to sue Volkswagen under any violations to the state’s clean air laws. Vermont has some of the strictest clean air laws in the country, according to Sorrell.
Volkswagen owners can visit the attorney general’s website to learn more about whether their vehicle is covered under the proposed settlement. The offer does not apply to affected Volkswagen models with 3-liter engines, which are largely luxury Audis and Porsches.
“We think this is actually quite generous, the consumer recovery piece, but we’re not trying to convince consumers to take it,” Sorrell said. “They need to make those calls themselves.”
