SAN FRANCISCO—A $15 billion settlement over Volkswagen’s diesel emissions cheating scandal faced a critical test, as a federal judge decided whether to grant it preliminary approval.
U.S. District Court Judge Charles Breyer was scheduled to consider the settlement during a hearing on Tuesday and appeared inclined to approve it.
He has kept close watch over the negotiations and previously praised the efforts of attorneys and a court-appointed settlement master who helped broker the deal.
Preliminary approval would allow attorneys to notify vehicle owners of the terms, which include a buyback option.
The owners could use a settlement website to determine how much compensation Volkswagen would give them. They could object and opt out, allowing them to pursue legal action against Volkswagen on their own.
Breyer is expected to decide in October whether to grant final approval of the settlement or tell the parties to keep negotiating.
