The deal is part of a $16.7 billion settlement agreed in the U.S.

 Volkswagen has agreed a deal to pay $175 million in fees to lawyers representing owners of emissions cheating diesel cars as part of a $16.7 billion settlement package, reports Automotive News.

The lawyers had sought $332.5 million from VW to cover fees and costs incurred as they represented 475,000 owners in a class action lawsuit. The resolution to pay just over half that amount means VW has taken another small but significant step in moving beyond the dieselgate scandal.

In September of last year, it emerged that VW Group cars fitted with a 2.0-liter, four-cylinder turbo diesel engine and sold since 2009 used hidden software that allowed them produce up to 40 times more nitrogen oxide than is allowed in normal running, and yet perform within the limits under testing conditions.

Earlier this year, VW agreed to pay up to $10.033 billion to buy back affected vehicles and compensate owners. A further $2.7 billion will be spent off-setting diesel pollution, $2 billion will go on promoting zero-emission vehicles and building supporting infrastructure, $1.21 billion will compensate VW dealers across the U.S., and $600 million will be paid out to 44 U.S. states.

U.S. District Judge Charles Breyer will hold a hearing today in San Francisco to decide whether or not the settlement will be signed off.

In addition, VW could face fines totalling tens of billions of dollars from the Justice Department, which is carrying out a criminal investigation into the cheating.

A fix to bring affected cars up to standard is still in the works, and could be approved as early as next month.

Discussions are ongoing to agree a package for the 85,000 owners of Audi, Porsche, and Volkswagen models fitted with a 3.0-liter, V6 turbo diesel that was also found to be circumventing emissions standards.

The scandal has cost VW its place as the world’s number 1 automaker, and forced a number of high-ranking executives to resign. A number of other countries are carrying out their own investigations into the matter, while a recall of some 8 million affected cars is underway in Europe.

Source: Automotive News