VW Diesel-Cheat Deal Not for Cars Bought at Insurance Auction

Volkswagen AG’s $10 billion diesel cheat settlement excludes claimants who bought cars at insurance auctions after the settlement was approved, the Ninth Circuit affirmed Thursday.

The district court properly approved a modification to the settlement that expanded the types of cars ineligible for compensation to include insurance auction purchases, the U.S. Court of Appeals for the Ninth Circuit said.

The 2016 settlement included compensation to owners of nearly half a million vehicles containing devices to cheat emissions tests, and the removal of affected vehicles from the road.

Certain vehicles purchased from junkyards or salvage yards were ineligible for compensation. These ...