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VW, Audi Parent Companies Shed Diesel Suit by State of Texas (1)

Dec. 23, 2020, 10:53 PMUpdated: Dec. 24, 2020, 1:11 AM

Volkswagen AG and Audi AG aren’t subject to a state government suit in Texas over “diesel cheat” software updates because they directed the updates to the U.S. generally, not to that state specifically, a divided Texas Court of Appeals ruled.

The court Tuesday reversed a trial court decision allowing the state’s “tampering” claims under the Texas Clean Air Act and related regulations to proceed against the German companies.

Volkswagen settled the Environmental Protection Agency’s criminal and civil actions for more than $20 billion but didn’t obtain a release of liability from state and local governments.

Florida and Utah counties, like ...