Volkswagen to pay Washington state $26 million

SEATTLE — Washington Attorney General Bob Ferguson announced that Volkswagen has agreed to pay the state more than $26 million over its deceptive marketing of its “clean diesel” vehicles.

Ferguson says the agreement also includes restitution for consumers and billions in investments in clean technology development and environmental mitigation.

The settlement is believed to be the third-largest Consumer Protection recovery in Washington’s history.

Ferguson says Volkswagen pulled a bait-and-switch on Washington consumers, and the agreement holds them accountable.

Tuesday’s announcement is part of a series of state and federal agreements that will provide cash payments to affected consumers and require Volkswagen to buy back or modify certain VW and Audi 2.0-liter diesel vehicles.

Ferguson and attorneys general of five other states co-led a multi-state coalition investigating the allegations against Volkswagen.