Attorney General Andy Beshear today announced he will transfer nearly $2.8 million in the state’s General Fund from his office’s settlement with Volkswagen.
The $2,777,280 payment from the German automaker for willfully violating Kentucky’s Consumer Protection Act represents state civil penalties.
Beshear said lawmakers may spend the multi-million-dollar payment to the general fund on their priorities toward better serving the citizens of Kentucky.
“I am proud of our team for holding Volkswagen accountable for their deceitful actions,” Beshear said. “The nearly $2.8 million gives lawmakers a financial advantage in their future spending on programs to set Kentucky on path to economic prosperity.”
In March, Beshear filed a lawsuit claiming Volkswagen, and its connected brands Audi and Porsche, broke state laws when the automaker deliberately misled Kentucky consumers.
Beshear said over time the various Volkswagen settlements could produce more than $100 million in restitution to both the Commonwealth and impacted consumers.
The suit alleged that Volkswagen installed rigged software on their Turbocharged Direct Injection (TDI®) diesel-engine automobiles to cheat emissions tests and claimed the cars had “clean diesel” technology.
The suit sought to ensure restitution for Kentucky car owners, and civil penalties and environmental damages for the state. Volkswagen settled by agreeing to compensate Kentucky TDI owners and the Commonwealth.
Under the terms of the customer restitution package, nearly 3,200 TDI owners in Kentucky who choose a buyback option will receive payments of between $5,100 and $10,000, in addition to the value of their vehicle as of Sept. 2015, when the scandal became public. Vehicle owners who do not choose the buyback option will receive a vehicle modification to reduce emissions. Regulators must approve the modification that Volkswagen is currently working to develop.
Full details of the consumer restitution program are available online.
In addition to the civil penalties, Beshear ensured the Commonwealth is eligible for more than $19 million in environmental damages from an Environmental Mitigation Trust funded by Volkswagen.
This isn’t the first time in 2016 Beshear’s office returned settlement funds to the state. Earlier this year, the office gave $17.5 million to the General Fund that lawmakers used for drug treatment, the Rocket Docket program and to end Kentucky’s rape kit backlog.
(story provided by Kentucky's Office of the Attorney General)
