Background
In September 2015, the United States Environmental Protections Agency (EPA) disclosed that Volkswagen's turbocharged direct injection (TDI) diesel engines — while meeting regulatory standards in laboratory settings — exhibited significantly elevated nitrogen oxide emissions during real-world driving. This revelation impacted approximately 590,000 vehicles within the U.S., forming part of a global issue affecting an estimated 11 million automobiles. Subsequent settlement agreements with the Department of Justice (DOJ), the State of California, the Federal Trade Commission (FTC), and private plaintiffs, necessitated a comprehensive and time-critical settlement program.
Volkswagen was obligated to execute a large-scale, nationwide remediation program, encompassing vehicle buybacks, lease terminations, and approved emissions modifications, targeting a minimum of 85% of the affected U.S. vehicle fleet. Alongside these actions, the agreements mandated direct compensation to impacted consumers. The sheer volume of vehicles, the complexity of the required actions, and the strict timelines imposed by the settlements presented an immense logistical and administrative challenge. The rapid deployment of a framework and system capable of handling such a large scale, while maintaining legal and regulatory compliance, created an unprecedented demand for efficient and accurate processes.
Ankura's Involvement
Ankura served as the court-appointed independent claims supervisor. In this role, it was our job to ensure compliance with certain requirements mandated in the resolution agreements and verify the calculation of payments from the $14.7 billion settlement fund. From 2016-2020, Ankura:
- Established claim review procedures, evaluated claim data and documentation to audit Volkswagen’s eligibility determinations, and fielded appeals from claimants.
- Built a custom claims management system to intake, review, process, and determine claim eligibility.
- Investigated instances of potential fraud in the claim filing process.
- Provided comprehensive oversight for Volkswagen call centers, ensuring all consumer issues were promptly addressed, and quality service was consistently delivered.
- Ensured that compensation was calculated and paid in compliance with the resolution agreements.
- Determined eligibility of non-standard claim categories such as branded titles, foreign stakeholders, multiple owners or lessees, mass purchasers, dealership and/or auction claims, among others.
- Produced and distributed monthly and quarterly reports to the public regarding Volkswagen’s progress and compliance related to the agreements.
Value Delivered
Over 600,000 claims were filed and reviewed for eligibility.
Consumers were repaid more than $10 billion.
Facilitated payments associated with more than 95% of affected vehicles.
The Chair of the Plaintiffs’ Steering Committee in the consolidated litigation, called Ankura’s work “careful and conscientious” and the outcomes of the case for consumers “spectacular.”
“The Claims Supervisor's presence, and effective performance, undoubtedly helped facilitate the extremely positive result.” – FTC’s Final Status Report on Consumer Compensation
About Mass Torts & Settlement Administration
At Ankura, we deliver tailored solutions to meet the complex demands of mass tort and class action litigation. With deep experience in some of the largest cases in history, we provide expert consulting to all parties involved. Our multidisciplinary team ensures accurate, defensible damage assessments and operationalizes complex settlements with efficiency and equity. We also leverage proprietary technology, including our ClaimsOnline platform, to help clients navigate even the most challenging litigation landscapes.
Sign up to receive all the latest insights from Ankura. Subscribe now
© Copyright 2025. The views expressed herein are those of the author(s) and not necessarily the views of Ankura Consulting Group, LLC., its management, its subsidiaries, its affiliates, or its other professionals. Ankura is not a law firm and cannot provide legal advice.
