Volkswagen has agreed an €830 million (£698 million) payout to settle a class action lawsuit in Germany relating to the Dieselgate scandal.

The German car giant’s agreement with the Federation of German Consumer Organisations (VZBV) was reached after discussions between the two sides brokered by courts in Braunschweig, where the case had been logged.

The VZBZ organised the class action for German buyers of Volkswagen Group vehicles fitted with the ‘defeat device’ that enabled the machines to beat emissions tests. It is estimated that around 260,000 members of the class action will be eligible for a share in the payout. The amount each will receive will range from €1350 to €6257 (£1140 to £5300), depending on the age and model of their car.

To date, the scandal, which broke in 2015, has cost VW more than £25 billion in fines and costs. The VW Group previously reached settlements with American and Australian owners, and had previously said it would defend European claims, citing different regulations that it says it did not breach. 

Volkswagen still faces a number of class action suits in other countries, including the UK, where court proceedings began late last year.

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