VW hires Feinberg to handle diesel emissions claims

By Ryan Beene, Crain News Service

WASHINGTON (Dec. 17, 2015) — Volkswagen of America has hired attorney and compensation expert Kenneth Feinberg to help it resolve claims by owners of diesel vehicles with illegal emissions software.

Mr. Feinberg, who oversaw the compensation program for victims injured or killed by General Motors Co. vehicles with defective ignition switches, will develop and administer a program to address claims brought by owners of VW's 2.0-liter and 3.0-liter diesel vehicles with the illegal software. Mr. Feinberg said he will accept input on the program from VW, vehicle owners and their attorneys, and other interested parties.

VW of America CEO Michael Horn announced Mr. Feinberg's hiring in a statement issued Dec. 17.

“His extensive experience in handling such complex matters will help to guide us as we move forward to make things right with our customers,” the statement said.

A Volkswagen of America spokeswoman said Mr. Feinberg's program will be an out-of-court process, and such programs typically ask claimants who accept an award to waive their rights to sue the company in exchange for a settlement.

Volkswagen currently faces more than 450 lawsuits related to the diesel emissions violations that were assigned to U.S. District Judge Charles R. Breyer in San Francisco last week.

Mr. Feinberg issued his final report on the GM ignition-switch claims fund on Dec. 9, noting GM paid out $594.5 million in settlements and approved 399 death and injury claims.

Mr. Feinberg has become the go-to expert for high-profile settlement cases. In addition to the GM ignition-switch fund, Mr. Feinberg oversaw the compensation programs for the victims of the Sept. 11, 2001, terrorist attacks and the 2010 BP Deepwater Horizon oil spill disaster.

This report appeared on the website of Automotive News, a Detroit-based sister publication of Tire Business.