📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Volkswagen prevails against US counties' diesel emissions claims

Published 06/23/2023, 04:33 PM
Updated 06/23/2023, 04:40 PM
© Reuters. FILE PHOTO: A technician fixes a VW sign in the assembly line of German carmaker Volkswagen's electric ID. 3 car in Dresden, Germany, June 8, 2021. REUTERS/Matthias Rietschel/File Photo
VOWG_p
-

By Brendan Pierson

(Reuters) - A federal judge has ruled in favor of Volkswagen (ETR:VOWG_p) in lawsuits brought against the automaker by two U.S. counties over its diesel emissions cheating scandal.

U.S. District Judge Charles Breyer in San Francisco ruled Thursday that Utah's Salt Lake County and Florida's Hillsborough County could not prove that Volkswagen violated their regulations against tampering with vehicles' emission control systems. The counties can still appeal to the San Francisco-based 9th U.S. Circuit Court of Appeals.

Robert Giuffra, a lawyer for Volkswagen, said the decision puts the company "near the end of the diesel litigation road in the U.S." The company in May reached an $85 million settlement with Texas, the last remaining state suing the company, though that deal is not yet final.

Lawyers for the two counties did not immediately respond to requests r comment.

Volkswagen in 2015 disclosed that it had cheated emissions tests by installing so-called "defeat devices" and sophisticated software in 11 million vehicles worldwide, allowing them to reduce emissions only during emissions tests.

The company previously agreed to pay more than $20 billion in criminal and civil penalties and settlements to U.S. federal regulators, states, dealers and owners. Worldwide, it has paid out a total of more than $30 billion.

© Reuters. FILE PHOTO: A technician fixes a VW sign in the assembly line of German carmaker Volkswagen's electric ID. 3 car in Dresden, Germany, June 8, 2021. REUTERS/Matthias Rietschel/File Photo

The 9th Circuit ruled in 2020 that state and local governments could not sue over the defeat devices and software originally sold with the vehicles, because the federal Clean Air Act left that up to the U.S. Environmental Protection Agency. However, it allowed them to sue over updates to the software installed later during maintenance.

Breyer rejected the counties' claims over those updates because, he found, evidence did not show that they worsened emissions.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.