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Judge is expected to approve VW settlement

October 18, 2016 at 10:59 p.m. EDT
AUTO INDUSTRY

VW settlement likely to get judge’s approval

Volkswagen AG is likely to secure a U.S. judge’s final sign-off on its $14.7 billion settlement with drivers as it continues to seek regulators’ approval of a fix for 482,000 pollution-spewing vehicles still on U.S. roads.

U.S. District Judge Charles Breyer in San Francisco said he is “strongly” inclined to approve the settlement requiring VW to buy back cars with 2.0-liter diesel engines equipped with defeat devices to cheat pollution-control tests. Breyer, after listening Tuesday to critics of the deal, including more than 20 car owners, said he will issue a ruling before Oct. 25.

The judge also gave preliminary approval to VW’s $1.2 billion settlement with 652 auto dealerships to cover their losses related to the diesel-cheating scandal. He scheduled a hearing for January to consider final approval of that agreement.

VW reached the settlement covering the 2.0-liter engines in June with consumers and regulators, including the Environmental Protection Agency. The settlement allows car owners to choose a buyback or repair, if a repair is approved.

— Bloomberg News

ENTERTAINMENT

DreamWorks settles class-action lawsuit

Comcast’s DreamWorks Animation agreed to pay $50 million to resolve claims it colluded with other animation studios to not hire one another’s workers in California, where allegations of no-poaching pacts have plagued technology companies for years.

DreamWorks will cooperate with attorneys for former animators and visual-effects employees who are pressing forward with their class-action case against Walt Disney Co. and its Lucasfilm and Pixar units, plaintiffs’ attorneys said in a court filing Monday.

Two Sony Pictures units and Blue Sky Studios already have won preliminary approval for settlements totaling $19 million.

The antitrust suit against the companies is based on allegations that they conspired to suppress wages through a “gentleman’s agreement” to not solicit one another’s workers. Apple, Google, Intel and Adobe Systems last year paid $415 million to resolve their part in a similar case that was brought against a group of Silicon Valley technology companies that had been investigated for collusion by the Justice Department.

— Bloomberg News

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