Volkswagen reaches $351 million dieselgate settlement with former execs By Reuters

BERLIN (Reuters) – Volkswagen (DE:VOWG_p) on Wednesday said it had agreed with former executives, including ex-CEO Martin Winterkorn, to settle claims related to the dieselgate scandal in a 288 million euro ($351 million) deal.

The agreement, which consists mainly of a 270 million euro payment from directors’ and officers’ liability (D&O) insurances, also includes a settlement with former Audi boss Rupert Stadler.

It still needs to be approved at the company’s annual general meeting on July 22.

Volkswagen in late March said it would claim damages from Winterkorn and Stadler on account of breaches of duty of care under stock corporation law.

Volkswagen concluded that Winterkorn had breached his duty of care by failing to fully and swiftly clarify circumstances behind the use of unlawful software functions in some diesel engines sold in the North American market between 2009 and 2015.

As part of the deal, Winterkorn and Stadler will pay 11.2 million and 4.1 million euros, respectively. Former Audi board member Stefan Knirsch agreed to settle for 1 million euros, and ex-Porsche AG board member Wolfgang Hatz for 1.5 million, VW said.

The settlement comes as Berlin prosecutors on Wednesday said they had brought separate charges against Winterkorn for giving false testimony to the German parliament when he said he was unaware of the carmaker’s diesel scandal before it broke.

($1 = 0.8205 euros)