Volkswagen's logo is seen as it launches its ID. 6 and ID. WASHINGTON, Jan 21, Reuters -- Volkswagen AG VOWG p. DE agreed to a $3.5 million settlement with Ohio over claims that the German automaker has abused state laws by manipulating vehicle software in its vehicles to mask carbon dioxide emissions, the state attorney general said.
In November, the U.S. Supreme Court rejected Volkswagen's bid to avoid lawsuits filed by officials in three states including Ohio.
Volkswagen's U.S. subsidiary argued that only the federal government can pursue emissions claims under the Clean Air Act, the landmark U.S. environmental law. VW said it had reached a settlement of more than $20 billion with the U.S. Environmental Protection Agency and owners.
VW said Friday that the agreement fully resolves Ohio's legacy claims and puts this matter behind the company as we focus on building a future of sustainable mobility.
Texas and two counties in Utah and Florida have pending lawsuits.
The settlement is a fraction of what Ohio had previously sought. VW said in prior court papers that Ohio's claims could have totaled $350 million per day, or more than $127 billion per year, over a multi-year period. The damage to the environment and consumer trust required us to hold Volkswagen accountable, and this settlement does that, according to Ohio Attorney General Dave Yost. The attorneys general office and the Ohio Environmental Protection Agency will split the award settling the 2016 lawsuit.
In 2015, Volkswagen revealed that it had used sophisticated software to evade emissions requirements in nearly 11 million vehicles worldwide. It also misled the EPA, which started asking questions in 2014.
VW also installed software updates after sale, which was the conduct before the Supreme Court and Ohio lawsuits, as well as equipping vehicles with defeat devices before they were sold.
The VW software updates allowed the vehicle to be put into test mode, which suspended normal driving operations and reduced emissions during testing, according to Ohio's lawsuit.