The Audi emissions lawsuit is the set of civil, criminal, and class action cases brought against Audi AG and its parent, Volkswagen Group, after regulators discovered in 2015 that hundreds of thousands of Audi diesel vehicles carried software designed to cheat U.S. emissions tests. A parallel case later covered certain Audi gasoline models. Together, the proceedings produced buybacks and cash payments for owners, billions in penalties, a criminal conviction against Audi’s former CEO, and a $96.5 million U.S. settlement for gasoline-vehicle buyers.
Which Audi Vehicles Were Affected
Two waves of enforcement covered different Audi engines.
The diesel wave broke first. The 2.0-liter group included the Audi A3 from model years 2010 through 2015. The 3.0-liter group covered the Audi Q7 (2009–2016), A6 Quattro (2014–2016), A7 Quattro (2014–2016), A8 and A8L (2014–2016), and Q5 (2014–2016).1EPA. Learn About Volkswagen Violations Across all Volkswagen Group brands, roughly 590,000 diesel vehicles sold in the United States were implicated.2EPA. Volkswagen Clean Air Act Civil Settlement
A separate gasoline case followed. It covered the Audi A4, A5, A6, A7, A8, and Q5 from model years 2010 through 2016 fitted with 3.0-liter gasoline engines and automatic transmissions.3Motley Rice. Audi Emissions Fraud Lawsuit
What the Cheating Software Did
On September 18, 2015, the EPA issued a Notice of Violation covering 2.0-liter diesel engines. Software could detect a federal emissions test and switch on full controls. Once testing ended, controls were dialed back, allowing nitrogen oxide emissions up to 40 times the legal limit in normal driving.1EPA. Learn About Volkswagen Violations
A second Notice of Violation on November 2, 2015, targeted 3.0-liter diesel engines. Software in the engine control module placed the car in a low-emission “temperature conditioning” mode during testing and shifted to “normal mode” one second after the test phase ended, producing nitrogen oxide emissions up to nine times the federal standard.4EPA. EPA, California Notify Volkswagen of Additional Clean Air Act Violations Volkswagen later acknowledged the device had been in all U.S. 3.0-liter diesel models going back to 2009.5EPA. Learn About Volkswagen Violations
The gasoline case worked differently. In late 2016, the California Air Resources Board identified software in certain 3.0-liter gasoline Audis with automatic transmissions that appeared to lower carbon dioxide emissions during lab testing. The device reportedly monitored steering wheel input: if the wheel stayed nearly stationary, as it would on a dynamometer, the car entered a low-emissions mode. Once the wheel turned more than 15 degrees, the software deactivated and real-world emissions rose.6Motley Rice. VW Emission Gasoline Audi
What 2.0-Liter Diesel Owners Received
Judge Charles Breyer approved the 2.0-liter settlement on October 25, 2016. Volkswagen created a funding pool of up to $10.033 billion to cover buybacks, lease terminations, and owner compensation for roughly 475,000 eligible vehicles.7FTC. Volkswagen to Spend Up to $14.7 Billion to Settle Allegations of Cheating Emissions Tests and Deceiving Customers
Owners choosing the buyback received the vehicle’s September 2015 used-car value, adjusted for mileage and options. Most owners who had bought their vehicle before the scandal became public also qualified for an additional cash payment in the range of $5,100 to roughly $10,000. Owners who preferred to keep their car could wait for a free emissions modification, provided the EPA and CARB approved it. The deadline to participate was September 1, 2018.8Green Car Reports. Final VW Diesel Settlement Signed, Buyback Offers to Start Soon
What 3.0-Liter Diesel Owners Received
A separate settlement covered roughly 78,000 vehicles with 3.0-liter diesel engines. Judge Breyer approved it on May 17, 2017.9Automotive Fleet. VW’s 3.0L Settlement Approved by Judge The deal split the 3.0-liter cars into two technology generations with different remedies:
- Generation 1 (2009–2012 Audi Q7): these vehicles could not be brought into compliance with their original certification. Owners were offered a buyback, trade-in, or a reduced-emissions modification if one was approved. Lessees could terminate leases at no cost.
- Generation 2 (2013–2016 Audi Q7, and 2014–2016 A6, A7, A8/A8L, and Q5): Volkswagen was required to develop an emissions-compliant repair. If it succeeded, owners received the repair free of charge, an extended emissions warranty, and a cash payment. If it failed, owners gained buyback or trade-in rights.
Buyback payments included loan forgiveness of up to an additional 30 percent of the buyback amount.10VW Court Settlement. VW 3L Settlement Notice The EPA and CARB eventually approved the emissions-compliant repair for all Generation 2 Audi models.11Audizine. Was There a Deadline to Have Emissions Recall Done on TDIs
What Gasoline Vehicle Owners Received
On March 2, 2020, Judge Breyer approved a $96.5 million settlement covering more than 100,000 consumers who purchased or leased gasoline-powered Audi, Volkswagen, Porsche, and Bentley vehicles with overstated fuel economy ratings. Affected owners received lump-sum payments ranging from $518.40 to $2,332.80, calculated on how long they owned the vehicle and the gap between the original and corrected fuel economy labels, plus a 15 percent goodwill payment.12Top Class Actions. VW Agrees $96.5M Fuel Economy Class Action Settlement
Fines Against Audi and Volkswagen
The U.S. 2.0-liter package was valued at up to $14.7 billion once environmental and zero-emission commitments were added to the consumer fund. Volkswagen was required to pay $2.7 billion into an environmental mitigation trust and to invest $2 billion over ten years in zero-emission vehicle infrastructure.7FTC. Volkswagen to Spend Up to $14.7 Billion to Settle Allegations of Cheating Emissions Tests and Deceiving Customers
On January 11, 2017, Volkswagen AG pleaded guilty to three federal felony counts: conspiracy to defraud the United States, violating the Clean Air Act, and obstruction of justice. The company paid a $2.8 billion criminal penalty and an additional $1.5 billion in civil claims, a combined $4.3 billion federal resolution, with an independent compliance monitor appointed for three years.13ABC News. Volkswagen Pleads Guilty, Pays $4.3 Billion in Fines to Settle Diesel Emissions Scandal
Germany imposed its own penalty on Audi. In October 2018, Munich prosecutors ordered Audi AG to pay €800 million (about $925 million). Of that, €5 million was a penalty for failures of corporate oversight; the remaining €795 million was forfeiture of economic gains from the sale of roughly 4.9 million vehicles worldwide between 2004 and 2018. Audi accepted the fine and admitted responsibility.14OKC Fox. Audi Fined $925 Million in Germany Over Diesel Emissions Prosecutors in Braunschweig had imposed a separate €1 billion fine on Volkswagen AG earlier that year.15Fortune. Audi Volkswagen Emissions Scandal By 2020, Volkswagen reported total scandal costs of €31.3 billion (about $34.7 billion) in fines, settlements, and related expenses worldwide.16Reuters. Volkswagen Says Diesel Scandal Has Cost It 31.3 Billion Euros
Prosecutions of Audi Executives
Former Audi CEO Rupert Stadler was arrested by Munich prosecutors in June 2018 and charged with fraud and false certification for allowing rigged vehicles to keep selling after the EPA’s September 2015 notice of violation. On May 16, 2023, Stadler pleaded guilty in a Munich regional court and received a suspended sentence with a fine of €1.1 million (about $1.2 million).17Green Car Reports. Former Audi CEO Admits Guilt in Diesel Scandal, Pays Fine
Two co-defendants entered plea deals in the same Munich proceeding. Wolfgang Hatz, a former Audi board member overseeing drivetrain development, received a two-year suspended sentence and a €400,000 fine on a charge of fraud by negligence. Giovanni Pamio, a former drivetrain development engineer, received a nine-month suspended sentence and a €50,000 fine on the same charge.18Ward’s Auto. German Courts Hand Down Rulings in Dieselgate Cases Both had also been charged in the United States and were arrested by German authorities in 2017.19ProPublica. How VW Paid $25 Billion for Dieselgate and Got Off Easy
The UK Audi Claim
Audi owners outside the United States pursued their own case. The Audi NOx Emissions Group Litigation applied to vehicles fitted with 1.2, 1.6, or 2.0-liter EA189 diesel engines built before 2016, covering roughly 393,450 Audi vehicles in the UK. In April 2020, the UK High Court ruled that the software was an unlawful defeat device under EU rules, and Volkswagen’s appeal was rejected that August.20Emissions.co.uk. Audi Diesel Emissions Claim The parties settled out of court in May 2022 for £193 million, covering 91,000 motorists, and the claim is now closed. A newer UK class action against other automakers opened in October 2025, but Volkswagen Group is not among the lead defendants, having already resolved its UK claims.21BBC. Dieselgate Emissions Claims Trial