AG Brnovich Secures $40 Million Volkswagen Consumer Fraud Settlement

$10.5 Million for Arizona Consumers
$20 Million to Help Fund K-12 Education

PHOENIX - Attorney General Mark Brnovich announced today a $40 million settlement with Volkswagen to resolve false advertising claims involving so-called “Clean Diesel” cars and Volkswagen’s well-publicized diesel engine scandal. Under the settlement, VW agrees to pay Arizona consumers up to $1,000 for every qualifying vehicle. Arizona is the first state to obtain a direct consumer restitution payment as a result of a state enforcement action.

“The Attorney General’s Office isn’t afraid to take on a fight when Arizona consumers are deceived, which is why we filed our own consumer fraud lawsuit against VW,” said Attorney General Mark Brnovich. “We believed Arizona consumers deserved more and now they’re getting more.”

In addition to this $10.5 million in direct consumer restitution for Arizonans, VW will also deposit $20 million into the state's general fund to be used towards the state’s education funding shortage.

"While the additional $20 million secured for education purposes is a fraction of the money needed to address the state's education funding needs, we are happy to play a small part in a larger goal to get our teachers and schools the funding they desperately need,” added Brnovich.

The settlement reached with VW Group of America and other VW-related entities, covers certain VW, Audi, and Porsche diesel vehicles sold and leased in Arizona from 2008 to 2015. Arizonans are eligible to receive payments regardless of whether they have received money from other VW-related settlements. The remaining money will be used to pay attorneys' fees and costs and deposited into the Attorney General’s Office Consumer Revolving Fund to be used for future consumer enforcement actions.

This settlement resolves Attorney General Brnovich’s independent consumer fraud lawsuit which was pursued separately from the multi-state settlement finalized in June 2016. It represents a vastly better outcome for the State and Arizona consumers over the terms of the multi-state settlement. The multi-state settlement would have resulted in Arizona receiving only $11 million. Through today’s settlement, almost double that amount has been secured for education in Arizona alone. By pursuing a separate action and leading in the litigation efforts against VW, Attorney General Brnovich obtained millions in direct consumer restitution that was not included in the multi-state settlement.

A third-party claims administrator will be selected to help identify harmed consumers and a letter will be sent to eligible individuals once the consumers are identified. Consumers will have 90 days to return their form and collect up to $1,000 in restitution, if eligible. Consumers will have another 90 days to cash their check once received. A complete listing of covered vehicles is below. Eligible consumers will receive compensation even if they have already received restitution from VW as part of the 2016 class action settlement.

Assistant Attorneys General Oramel H. (O.H.) Skinner, Beau Roysden, and Evan Daniels worked on this matter.

2.0-Liter Diesel Models, With Model Years

  • 2009 - VW Jetta, VW Jetta Sportwagen
  • 2010 - VW Golf, VW Jetta, VW Jetta Sportwagen, Audi A3
  • 2011 - VW Golf, VW Jetta, VW Jetta Sportwagen, Audi A3
  • 2012 - VW Golf, VW Jetta, VW Jetta Sportwagen, Audi A3, VW Passat
  • 2013 - VW Golf, VW Jetta, VW Jetta Sportwagen, Audi A3, VW Passat,  VW Beetle, VW Beetle Convertible
  • 2014 - VW Golf, VW Jetta, VW Jetta Sportwagen, VW Passat, VW Beetle,  VW Beetle Convertible
  • 2015 - VW Golf, VW Golf Sportwagen, VW Jetta, Audi A3, VW Passat, VW Beetle, VW Beetle Convertible

3.0-Liter Diesel Models, With Model Years

  • 2009 - VW Touareg, Audi Q7
  • 2010 - VW Touareg, Audi Q7
  • 2011 - VW Touareg, Audi Q7
  • 2012 - VW Touareg, Audi Q7
  • 2013 - VW Touareg, Audi Q7, Porsche Cayenne Diesel
  • 2014 - VW Touareg, Audi Q7, Porsche Cayenne Diesel, Audi A6 Quattro, Audi A7 Quattro, Audi A8L, Audi Q5