WASHINGTON—Volkswagen AG’s U.S. unit will pay $3.5 million to resolve a lawsuit by the state of Illinois against the German automaker for updates of emissions software arising from the 2015 diesel cheating scandal.
Last month, the U.S. Supreme Court rejected Volkswagen’s bid to avoid lawsuits filed by officials in other states seeking damages. Volkswagen had earlier warned of potential astronomical damages in the state and local suits.
