Volkswagen reaches $1.2B settlement with dealers in scandal

SAN FRANCISCO — Volkswagen has agreed to pay its U.S. dealers up to $1.2 billion to compensate them for losses they said they suffered as a result of the company's emissions cheating scandal.

Attorneys for the carmaker and dealers included the figure in a settlement agreement filed in federal court in San Francisco on Friday. Under the terms of the deal, dealers can also choose to opt out and pursue their own lawsuits against Volkswagen.

A judge still has to approve the settlement before it can go into effect.

Volkswagen previously reached an agreement with attorneys for car owners. That deal calls for it to spend up to $10 billion buying back or repairing about 475,000 vehicles involved in its scandal.

Attorneys for vehicle owners said in a court filing on Friday that more than 311,000 people have registered for the deal.