Volkswagen hires Kenneth R. Feinberg to Develop Compensation Program for Emission Scandal Victims
Posted on Friday, December 18th, 2015
Months after Volkswagen admitted to equipping certain diesel vehicles with software designed to cheat emissions tests, the company has hired Kenneth R. Feinberg to address claims related to the scandal and create a compensation plan for victims. Feinberg is a leading specialist in compensation funds, his most notable work including payouts to victims of 9/11, the BP oil spill, and most recently, those who were affected by the faulty ignition switches in General Motors’ vehicles.
Volkswagen came under fire after the company admitted to installing illegal devices in certain diesel vehicles in order to get lower results on emissions tests, leading many VW owners to take legal action against the automaker, claiming that their vehicles were devalued because of the scandal.
While details of the compensation program have yet to be finalized, VW hopes this move will limit the number of lawsuits filed against them. Feinberg and his team’s first step in developing this program will be to outline parameters for eligibility and what proof vehicle owners will be required to provide. Feinberg plans to receive input from the company as well as vehicle owners to fully develop the plan, including the amount of compensation that affected VW owners could get.
Feinberg also explained that the compensation program will not interfere with any state and federal investigations of the company’s actions regarding the scandal. He expects that the program will take about 60 to 90 days to develop.