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The encyclopedia · Legal & Compliance · Legal decision · 2015–2022

Volkswagen avoided a UK dieselgate trial by paying £193M to 91,000 drivers instead

Facing a six-month trial over cheating software, Volkswagen settled with English and Welsh claimants for £193M rather than let a verdict set the facts.

Volkswagen Group · 2022-05-25

What happened

Volkswagen's 2015 admission that it had installed software to cheat diesel emissions tests set off lawsuits across dozens of countries. In England and Wales, around 91,000 owners of VW, Audi, SEAT and Skoda vehicles fitted with the EA189 engine brought a group claim alleging the cars' "two-mode" software detected test conditions and lowered nitrogen oxide output only during testing, then reverted to higher real-world emissions.

The case was scheduled for a six-month High Court trial beginning January 2023 — long enough, and public enough, that a judgment against Volkswagen would have created a detailed factual and legal record other claimants worldwide could cite. Volkswagen settled instead, agreeing in May 2022 to pay £193 million (about $242 million) to the claimant group, averaging just over £2,100 per claimant.

Volkswagen made no admission of liability, causation or loss in the settlement, and said in its own statement that the legal costs of a full trial made settling the commercially prudent choice. The claimants' solicitors — Slater and Gordon, Leigh Day and PGMBM — represented owners under group litigation orders the English courts use for mass consumer claims.

Why it happened

  • The underlying software had already been publicly admitted by Volkswagen in 2015, leaving little room to contest the facts of what the cars did.
  • A six-month trial risked producing a public judicial record on causation and damages that other national claimant groups could point to in their own cases.
  • Settling let Volkswagen fix a known cost without admitting the specific legal findings a trial verdict would have established.
  • The scale of the claimant group — 91,000 drivers under a single group litigation order — meant per-claimant amounts stayed moderate while the total remained substantial.
What it cost£193M ($242M) settlement to 91,000 claimantscostly

The lesson

Settling before trial is sometimes about avoiding the verdict's language, not just its cost — a public judgment on causation becomes ammunition for every other claimant group watching.

Sources

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