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VW said to pay at least $10 billion in U.S. cheating deal

Volkswagen AG has agreed to set aside at least $10 billion to resolve civil claims by the U.S. government and lawsuits by American car owners over diesel vehicles rigged to cheat pollution controls.

By Christoph Rauwald, Alan Katz, Kartikay Mehrotra, Bloomberg | Updated on April 21, 2016
The Justice Department’s criminal investigation into Volkswagen continues, as do other probes abroad. (Photo: Bloomberg)

(Bloomberg) – Volkswagen AG has agreed to set aside at least $10 billion to resolve civil claims by the U.S. government and lawsuits by American car owners over diesel vehicles rigged to cheat pollution controls, a person with direct knowledge of the matter said.

The parties reached the accord ahead of a Thursday deadline set by a federal judge for the carmaker to say how it would fix the vehicles. Volkswagen has been negotiating with U.S. environmental regulators on an acceptable solution. Judge Charles Breyer said that fixing the almost 600,000 vehicles or getting them off the road would be the first step to any settlement. The stock rose as much as 7.5% in Frankfurt.

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