WASHINGTON, Nov. 15 (Reuters) – The U.S. Supreme Court on Monday rejected Volkswagen AG‘s (VOWG_p.DE) offer to avoid lawsuits from officials in three states for damages over the German automaker’s diesel emissions fraud scandal.

The judges refused to hear appeals from VW and German auto supplier Robert Bosch LLC against a lower court ruling that allowed Florida’s Hillsborough Counties and Utah’s Salt Lake Counties to hold the companies liable under local laws and regulations for tampering with the Exclude emissions control of vehicles. The court also dismissed VW’s appeal against a similar ruling in an Ohio state case.

A VW spokesman stated that the court’s decision not to hear the appeals was not a “merit” of the company’s legal arguments.

“We are confident of the strength of our factual and legal defenses, including the fact that the software updates have reduced emissions, and will vigorously deny these claims as these cases progress,” the spokesman said.

Volkswagen subsidiary Volkswagen Group of America Inc has argued that under the Clean Air Act, the pioneering US environmental law, only the federal government can assert such claims. VW said it had already reached an agreement with the US environmental protection agency for more than $ 20 billion.

The lawsuits accused VW of having deceived the EPA – and violating local laws in the process.

“We’re delighted that the Supreme Court has recognized that federal environmental law does not give automakers the right to defraud Ohioans,” said Ohio Attorney General spokesman Dave Yost.

A spokesman for lawyers for the two counties added that the Supreme Court’s actions “have confirmed that local governments have a vital role to play in fighting air pollution.”

President Joe Biden’s administration, asked by the court to look into the dispute, had asked the judges not to hear the matter and said the Clean Air Act allows state law to be enforced.

In one case, Volkswagen wanted to overturn a 2020 ruling by the 9th U.S. Court of Appeals in San Francisco. The 9th District ruled that the Clean Air Act does not prejudice local efforts to impose liability on vehicles that VW tampered with after the sale. However, the 9th Circuit agreed with VW that, under local anti-tampering laws, it cannot be held responsible for any actions it took prior to the sale.

The 9th district said its decision could result in “grave liability for Volkswagen”.

Volkswagen also attempted to overturn a June Ohio Supreme Court ruling that came to a similar conclusion.

VW has announced that in the cases, and possibly in other cases, there is a risk of major damage. Daimler AG (DAIGn.DE) and Fiat Chrysler, part of Stellantis NV (STLA.MI), are facing similar lawsuits.

Volkswagen announced in September it would pay $ 1.5 million to settle similar claims in New Hampshire and Montana.

In 2015, Volkswagen announced that it had circumvented nitrogen oxide emission regulations in almost 11 million vehicles worldwide using sophisticated software. It also misled the EPA, which started asking questions in 2014.

In addition to equipping vehicles with “cut-off devices” before the sale, VW also installed software updates after the sale to address the behavior that was disputed before the BGH. At the time, VW did not reveal the real purpose of the updates, which were aimed at refining the software used to control emissions.

Reporting by Lawrence Hurley; Additional coverage from David Shepardson; Adaptation by Will Dunham

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