VW names Feinberg to handle diesel compensation

VW names Feinberg to handle diesel compensation

Disaster specialist handled GM ignition problems, several disaster funds.

December 21, 2015

Herndon, Virginia – Kenneth R. Feinberg, the disaster specialist who has handled compensation funds for Sept. 11, 2001, terrorist attack victims; Agent Orange-exposed veterans; Virginia Tech shooting victims; BP oil spill victims; victims of former Penn State assistant football coach Jerry Sandusky; and most recently General Motors’ ignition switch victims fund, will oversee a claims resolution process for owners of Volkswagen diesel vehicles.

Officials with the automaker say Feinberg will, “will develop an independent, fair and swift process for resolving these claims.”

Regulators this year accused Volkswagen of cheating on emissions tests, saying its 2L and 3L diesel engines emit up to 40x the legal limits. Company officials acknowledged wrongdoing and say they are working on a fix for the problem. That fix could include lowering power or fuel economy levels of VW vehicles, something that could annoy customers who bought vehicles with the promise of power and efficiency.

“(Feinberg’s) extensive experience in handling such complex matters will help to guide us as we move forward to make things right with our customers,” says Michael Horn, president and CEO, Volkswagen Group of America.

Feinberg adds he will “commence work immediately designing an independent claims process that will meet claimants’ needs. We hope to have a claims program designed as expeditiously as possible. In order to do so, we will need the input not only of Volkswagen, but also vehicle owners, their lawyers, and other interested parties.”

In addition to his work on disaster funds, Feinberg served as the special master overseeing executive compensation for companies that received federal bailouts from the federal Troubled Assets Relief Program (TARP).

Source: Volkswagen Group of America Inc.