A judge for the US District Court for the Northern District of California [official website] said Thursday that German automaker Volkswagen AG (VW) [corporate website] has reached a settlement [case materials] with the US Environmental Protection Agency (EPA) [official website], California officials and consumers over a plan to fix or buy back nearly 600,000 diesel-powered vehicles that were found to have violated US emissions standards. Judge Charles Breyer had given VW one month to comply [JURIST report] after he was persuaded that VW engineers were working “round the clock” to develop a fix. The agreement includes compensation for consumers who will be able to sell back their vehicles or get repairs, but financial details were not available, as the deal is still being finalized [USA Today report]. Parties have until June 21 to file preliminary proposals on the settlement, at which point the public will have an opportunity to comment.

VW is facing legal difficulty around the world over the emissions scandal. A law firm in Germany filed a class action lawsuit [JURIST report] last month against VW on behalf of investors alleging a breach of duty to the capital market. Last year the Braunschweig public prosecutor’s office opened a criminal investigation [JURIST report] of former VW CEO Martin Winterkorn, following accusations that the company cheated on government emissions tests by manipulating exhaust valves. The investigation followed several criminal complaints, including one filed by VW, and came less than a week after Winterkorn stepped down as CEO of the company. In his statement he accepted “responsibility for the irregularities that have been found in diesel engines” and said that he was “clearing the way for this fresh start with [his] resignation.”