AG: $40 million Volkswagen settlement to help Arizona's education funds

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Attorney General Mark Brnovich announced a $40 million settlement with Volkswagen on Wednesday. (Source: 3TV/CBS 5) Attorney General Mark Brnovich announced a $40 million settlement with Volkswagen on Wednesday. (Source: 3TV/CBS 5)
PHOENIX (3TV/CBS 5) -

Attorney General Mark Brnovich announced a $40 million settlement with Volkswagen on Wednesday.

Volkswagen will deposit $20 million of the $40 million into the state's general fund to be used towards Arizona's education funding shortage, according to a news release.

A further $10.5 million will be paid out in direct consumer restitution for Arizonans.

[RELATED: Local group wants Volkswagen settlement to go toward electric school buses]

"While the additional $20 million secured for education purposes is a fraction of the money needed to address the state's education funding needs, we are happy to play a small part in a larger goal to get our teachers and schools the funding they desperately need," Brnovich said in a news release.

The settlement was to resolve false advertising claims involving Volkswagen's so-called "Clean Diesel" cars and their diesel engine scandal, according to a news release.

[READ MORE: Arizona group wants $57 million Volkswagen settlement to go toward electric school buses]

Volkswagen agreed to pay Arizona consumers up to $1,000 for every qualifying vehicle under the settlement.

Arizona is the first state to receive a direct consumer restitution payment as a result of a state enforcement action, the news release said.

"The Attorney General's Office isn't afraid to take on a fight when Arizona consumers are deceived, which is why we filed our own consumer fraud lawsuit against Volkswagen," Brnovich said. "We believed Arizona consumers deserved more and now they're getting more."

The settlement covers certain Volkswagen, Audi and Porsche diesel vehicles sold and leased in Arizona from 2008 to 2015. Arizona consumers are eligible to receive payments regardless of whether they received money from other Volkswagen-related settlements, the news release said.

[RELATED: AG: 10,000 Arizonans eligible for VW settlement]

The remaining money from the settlement will go towards attorneys' fees and costs and deposited into the Attorney General's Office Consumer Revolving Fund to be used for future consumer enforcement actions.

Brnovich pursued an independent consumer fraud lawsuit separately from the multi-state settlement which was finalized in June 2016.

The result of Brnovich's lawsuit is far superior to the multi-state lawsuit which would have resulted in Arizona receiving only $11 million.

Harmed consumers will be identified by a third-party claims administrator and a letter will be sent to eligible individuals once consumers are identified.

If eligible, consumers will have 90 days to return their form and collect up to $1,000 in restitution.

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