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VW Group to pay $96.5M to settle inflated fuel economy lawsuit

VW Group of America said Friday it has reached an agreement with thousands of U.S. customers over alleged inflated fuel economy information on about 98,000 gas-powered vehicles from its four brands, Audi, Bentley, Porsche and Volkswagen.

The agreement involves alleged misinformation about fuel economy on 98,000 vehicles, or about 3.5% of the model year 2013-2017 VW Group vehicles sold or leased in the United States. The fuel economy will be restated to reflect a discrepancy of one mile per gallon, when rounded according to the U.S.-specific “Monroney” label requirements, according to the EPA.

Most of the vehicles affected by the overstatement of fuel economy were from Audi, Bentley and Porsche, including the 2013, 2014, 2015 and 2016 Audi A8L, RS7 and S8 vehicles. Other affected models include variants of the Porsche Cayenne, such as the Cayenne S and Cayenne Turbo.

Volkswagen does not admit wrongdoing under the terms of the settlement.

Eligible customers will receive payments ranging from $5.40 to $24.30 for each month the vehicle is owned or leased. The total value of the settlement, which is subject to court approval, is $96.5 million, according to VW.

Volkswagen Group of America will also adjust its Greenhouse Gas credits to account for any excess credits associated with the fuel economy discrepancy.

Potential claimants will have to submit a claim to receive compensation. However, owners do not need to take any action at this time. Individual class members will receive information about their rights and options (including the option to “opt out” of the settlement agreement) if the court grants preliminary approval of the proposed agreement, according to VW.

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