Volkswagen Settles with RI for Emissions Fraud: AG Kilmartin Says

PROVIDENCE, RI — Volkswagen will pay more than $4.1 million for selling and leasing diesel vehicles in Rhode Island while making deceptive claims about their emissions standards.

Atty. Gen, Peter Kilmartin today announced a settlement in the case. Rhode Island was part of a coalition of 10 states that sued.

Under the settlement announced today, Rhode Island must use its share, $4.1 million, on environmentally beneficial projects as directed and approved by the Attorney General’s Office. Volkswagen will also be required to offer for sale in these states 3 separate models of electric vehicles.

The total settlement came to $157,448,480 to Rhode Island and the other 9 settling states.

“Volkswagen deceived its customers along with state and federal regulators when the company knowingly sold vehicles that failed to meet emissions standards as marketed, and further, tried to cover up their actions,” said Kilmartin. “This settlement, one of the largest in recent history, along with related federal and state settlement against Volkswagen, will provide millions of dollars to Rhode Island for diesel emission reduction, electric vehicle infrastructure, and related environmental projects. These settlements hold the company responsible for their reckless and negligent actions.”

The attorneys generals’ investigation confirmed that Volkswagen sold more than 570,000 2.0- and 3.0-liter diesel vehicles in the United States equipped with “defeat device” software intended to circumvent applicable emissions standards for certain air pollutants, and actively concealed the existence of the defeat device from regulators and the public. Volkswagen made false statements to consumers in their marketing and advertising, misrepresenting the cars as environmentally friendly or “green” and that the cars were compliant with federal and state emissions standards, when, in fact, Volkswagen knew the vehicles emitted harmful oxides of nitrogen (NOx) at rates many times higher than the law permitted.

In addition to today’s state environmental settlement, previous federal and state settlements have provided significant benefits and restitution for the State, as well as consumer lessees and owners of affected vehicles. As part of a previously announced federal settlement, Volkswagen will pay $2.7 billion into a trust to support environmental programs throughout the country to reduce emissions of NOx. This fund, also subject to court approval, is intended to mitigate the total, lifetime excess NOx emissions from the 2.0-liter diesel vehicles identified below. Under the terms of the mitigation trust, Rhode Island is eligible to receive approximately $13.5 million to fund mitigation projects through the Department of Environmental Management.

Today’s settlement marks the first time the settling states -- all of which have adopted California’s stringent vehicle emission standards -- have secured environmental penalties from an automobile manufacturer under their own state auto emissions laws.

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