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Volkswagen's Former CEO Martin Winterkorn To Pay EUR11.2 Mln To Settle Over Dieselgate Scandal

Volkswagen AG ((VKW.L,VLKAF.PK,VOW.BE) on Wednesday said that it has reached an agreement to settle its claims against four former executives, including long-time CEO and former Chairman Martin Winterkorn, related to its dieselgate scandal.

Winterkorn will pay an amount of 11.2 million euros, while former board member and Audi AG's Chairman Rupert Stadler will pay an amount of 4.1 million euros. Volkswagen has also reached an agreement about compensation payments from its D&O insurance in this regard to an amount of 270 million euros.

Volkswagen said that "Winterkorn breached his duties of care as former Chairman of the Board of Management of Volkswagen AG by failing, in the period from 27 July 2015 on, to comprehensively and promptly clarify the circumstances behind the use of unlawful software functions in 2.0l TDI diesel engines sold in the North American market between 2009 and 2015."

"Winterkorn also failed to ensure that the questions asked by the US authorities, in this context were answered truthfully, completely and without delay," the company added.

Meanwhile, the Berlin prosecutors charged Winterkorn on Wednesday for giving false testimony to the German parliament.

Besides Winterkorn and Stadler, former Audi executive Stefan Knirsch will pay 1 million euros and Wolfgang Hatz, a former executive for Porsche, will pay 1.5 million euros. Porsche is a part of the Volkswagen Group.

In 2015 that Volkswagen was caught using illegal software in thousands of vehicles to cheat U.S. pollution tests. Winterkorn stepped down as Volkswagen CEO in September 2015, a week after the scandal broke. In January 2017, the automotive giant pleaded guilty to criminal charges. and agreed to pay some $4.3 billion in U.S. penalties for its scheme to deliberately rig hundreds of thousands of U.S. diesel vehicles to cheat on emissions tests.

The VW scandal extended to some 11 million other vehicles the company sold worldwide and led to U.S. criminal charges against eight people. The company had set aside more than $30 billion to cover costs and settlements, including $15 billion to buy back or fix vehicles in the U.S.

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