(Reuters) – Volkswagen AG decided to a $3.5 million settlement with Ohio over claims the German automaker violated state laws by manipulating vehicle software applications in its vehicles to mask carbon dioxide emissions, the state attorney general said.
In November, the U.S. Top court rejected Volkswagen’s bid to prevent lawsuits filed by officials in three states, including Ohio.
Volkswagen’s U.S. subsidiary argued that underneath the Climate Act, the landmark U.S. environmental law, just the federal government can pursue emissions claims. VW noted it had already reached a settlement in excess of $20 billion using the U.S. Environmental Protection Agency and owners.
“This agreement fully resolves Ohio's legacy claims and puts this condition behind the organization as we concentrate on building a way forward for sustainable mobility,” VW said Friday.
The money is a small fraction of what Ohio had previously sought. VW said in prior court papers that Ohio's claims might have totaled “$350 million each day, or even more than $127 billion each year, on the multi-year period.”
Ohio Attorney General Dave Yost said, “The harm to environmental surroundings and consumer trust required us to hold Volkswagen accountable which settlement does that.”
The Ohio Epa and the attorney general's office will split the award settling the 2022 lawsuit.
In 2022, Volkswagen disclosed it had used sophisticated software to evade emissions requirements in nearly 11 million vehicles worldwide.
