About this class action
In November 2015, Maurice Blackburn launched three Federal Court class actions against Volkswagen, Audi and Skoda following the global diesel emissions issue. The class actions settled after more than four years of litigation, with the Federal Court approving the settlement on 1 April 2020.
In Australia, the diesel emissions issue affects around 100,000 vehicles across 21 different models of Volkswagen, Audi and Skoda branded vehicles with 1.6 and 2.0 litre “EA189” diesel engines. The class actions alleged that the affected vehicles were fitted with illegal defeat devices that were designed to cheat emissions tests, and sought to recover compensation for affected motorists primarily on the basis of alleged breaches of the Competition and Consumer Act or Trade Practices Act.
On 1 April 2020, the Federal Court of Australia approved the settlement of the Australian class actions against Volkswagen, Audi and Skoda over the diesel emissions issue. The settlement was approved on the basis of a Settlement Scheme that sets out the process by which claims can be registered, assessed and paid, and the Deed of Release and Settlement that was agreed between the parties. The Court also appointed Maurice Blackburn as the Administrator of the settlement.
The registration process has now closed, and claims by affected motorists can no longer be accepted.
Key points in relation to the settlement are as follows:
- Australian motorists have registered claims relating to approximately 43,000 affected vehicles.
- The Volkswagen Group has, without admission of liability, paid approximately AU$120 million to eligible Australian motorists, most of whom have already received their settlement payments, and the Volkswagen Group has additionally paid legal costs and other payments as part of the agreed settlement.
- The estimated average settlement payment per vehicle is approximately AU$2,800, subject to the final assessment of all claims registered by Australian motorists.
- The amount that individual motorists will receive will vary depending on factors such as the type of the vehicle and its age, however the range of settlement payments per vehicle, calculated in accordance with the method developed by lawyers acting for the applicants, is estimated to be approximately AU$1,589 to AU$6,554.
On 13 May 2020, the Federal Court delivered its written judgment in relation to the approval of the settlement.
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