Volkswagen Group and its Audi unit have agreed to an $85 million settlement in principle over violations of Texas environmental laws stemming from its diesel cheating scandal, Texas Attorney General Ken Paxton said on Thursday.
The settlement stipulates that the German automakers pay a civil penalty of $85 million for their unlawful actions, Paxton said.
Earlier this month, the Texas Supreme Court ruled the state environmental lawsuit against Volkswagen and Audi could go forward.
Volkswagen, which declined to comment on Thursday, previously settled U.S. actions prompted by the emissions scandal for more than $20 billion, but that did not shield it from local and state government liability, courts ruled previously.