State to Get Tens of Millions From Volkswagen Settlement

Massachusetts is part of a multi-state group up for a piece of a $15 billion settlement after Volkswagen admitted it installed software to cheat emissions tests on its diesel vehicles, including more than 12,500 registered in Massachusetts.

State's Attorney General Maura Healey said Tuesday that Massachusetts is part of a group of states who the company will collectively give a total $570 million for violating state laws on deceptive trade practices. That funding is part of Volkwagen's larger settlement obligations.

Under the terms of the settlement, Massachusetts could receive close to $70 million toward environmental mitigation efforts, more than $20 million for violating consumer protection laws, additional funds to cover the cost of investigations and more.

“Volkswagen’s contempt for the law and fraud on thousands of consumers in Massachusetts and across the country were startling in their scope and brazenness,” Healey said in a press release. “Today’s settlements mark the beginning of our efforts to hold Volkswagen accountable for the harm it caused, with a robust consumer compensation program, critical funding for environmental mitigation projects, and a serious civil penalty for Volkswagen’s widespread false advertising of so-called clean diesel.”

Healey was part of a coalition of states taking the carry company to task over consumer protection claims. Other states leading that group included Connecticut, New York, Oregon, Tennessee and Washington, joined by 37 other states.

Under the multi-state agreement, Volkswagen is required to implement a restitution and recall program for more than 475,000 owners and lessees of 2.0-liter diesel vehicles, from model years 2009-2015. Thiatincludes more than 12,500 vehicles registered in Massachusetts, according to the AG's office.

Once the consumer program is approved by the court, affected Volkswagen owners will receive restitution payment ranging from at least $5,100 to a maximum of $10,000, and a choice between a vehicle buy-back or modification.

The full details of the consumer restitution and recall program are available online from VW and through the Federal Trade Commission’s website.

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