Attorneys deny report of second VW settlement

Attorneys representing owners of 3-liter Volkswagen Group diesel vehicles not included in the automaker's original settlement said Tuesday that they had not reached a settlement, despite a newswire report that the automaker has struck an accord with environmental regulators.

Bloomberg reported Tuesday that Volkswagen Group had reached a deal with the EPA and the California Air Resources Board to fix or buy back about 80,000 diesel vehicles equipped with software to dodge emissions standards.

Those vehicles were not part of a nearly $15 billion settlement approved last month by a federal judge that allows U.S. owners of about 475,000 eligible VW 2-liter diesel cars to choose between a buyback or a payout and free fix, if and when one becomes available.

Bloomberg said the 3-liter settlement would authorize a software fix for 60,000 vehicles capable of being repaired and a buyback for the other 19,000 units.

But Elizabeth Cabraser, lead counsel for the plaintiffs' committee representing vehicle owners in the confidential negotiations, said in a statement that "no settlement agreement has been reached."

"Any resolution must grant these consumers similar benefits," she said. "While an agreement between the EPA and Volkswagen may address some of the environmental damage, it does not hold the company accountable for the harm caused to consumers. We will continue to pursue a fair resolution on their behalf."

U.S. District Judge Charles Breyer said Nov. 3 that negotiators had made "substantial progress" on reaching a settlement. Former FBI director Robert Mueller is leading the talks as an independent intermediary.

Breyer issued a gag order preventing the two sides from revealing progress of the talks.

Volkswagen said Tuesday in a statement that it "continues to work closely with the EPA and CARB to reach an agreement on an approved resolution" but noted "that these discussions remain confidential" under court order.

Breyer is expected to hold another hearing Nov. 30 to get updates.

Vehicles involved in the latest round of talks include diesel versions of the 2014 Volkswagen Touareg, 2015 Porsche Cayenne, 2016 Audi Q5 and 2016 Audi A6 Quattro, A7 Quattro, A8 and A8L.

Follow Paste BN reporter Nathan Bomey on Twitter @NathanBomey.