Minnesota to get share of VW diesel settlement

Volkswagen has agreed to pay Minnesota more than $11.5 million as part of a wide-ranging settlement connected to a vehicle emissions scandal.

Court papers filed Monday by Minnesota Attorney General Lori Swanson's office lay out the deceptive practice claims that she and other attorneys general pursued against the German carmaker. The company is paying more than $443 million dollars to the states and $20 million to the national attorneys general association for consumer protection oversight expenses.

It is separate from the billions of dollars Volkswagen is paying for buybacks and fixes of its vehicles. Swanson said the Minnesota payment will aid some customers who wouldn't be made whole, but some cash could remain.

"It's Minnesota's money one way or the other — either to go back to consumers or to the extent there's money left over after that, then to go to the treasury," she said Tuesday.

Swanson said it will take time to determine how the money is parceled out because customer claims in conjunction with other settlements are still in process.

Each state's share is based on the number of leased or sold diesel vehicles with computer settings designed to cheat on emissions tests. There were more than 11,700 of the vehicles in Minnesota.

Other lawsuits against the company and some of its partners are still pending.

The scheme reduced the resale values of the cars and harmed consumer confidence with the company.

"It's unfair and inappropriate for one company to cut corners for its own bottom line when other competitors are held to a standard of compliance with the law," Swanson said. "The magnitude is big with this company and is going to get bigger with other claims still yet to be resolved."

The Minnesota settlement filed in Ramsey County District Court is awaiting final judicial signoff but all parties to the agreement have provided their consent.