Volkswagen and Audi have agreed to an $85 million (€79 million) settlement in principle for violating Texas laws during the diesel emissions scandal, Attorney General Ken Paxton said Thursday.
German car giant Volkswagen owns several car brands, including Audi.
The settlement stems from the diesel emissions scandal that mired the company in lawsuits for nearly a decade since the news broke in 2015.
Device that manipulated emissions
The German carmaker fit vehicles it sold in the US and Europe with a device to manipulate emissions tests between 2006 and 2015.
Volkswagen has recalled some 11 million vehicles worldwide and paid billions in settlements for deception and violations of rules and regulations.
The automotive giant has settled US federal court actions to the tune of $20 billion previously, but that has not shielded the company from local and state government liability, as courts have previously ruled.
Attorney General Paxton said in a statement: "If a company thinks they will avoid accountability when they violate Texas laws, endanger Texans, and pollute our environment, they're dead wrong."
"Volkswagen and Audi are finding that out the hard way, and now they are paying the price," he added.
