Judge Calls on Former FBI Chief to Mediate VW Diesel Claims

Robert Mueller, former head of the Federal Bureau of Investigation, has been chosen to mediate more than 500 claims in California that Volkswagen AG swindled customers by touting “clean” diesel cars whose engines had been rigged to cheat on emission tests.

U.S. District Court Judge Charles Breyer describes Mueller, a lawyer in San Francisco, as “uniquely qualified” to facilitate settlement discussions because of his government and private-sector experience.

The lawsuits claim consumer fraud, breach of contract and/or civil racketeering. The disgruntled owners want VW to reimburse them for the premium price they paid for the discredited diesel engines, compensation for lost value in the wake of VW’s admitted cheating and even buy back their cars.

Breyer is giving plaintiffs’ attorneys until the end of this week to comment on Mueller’s selection. His appointment comes less than a month after VW hired compensation expert Ken Feinberg to create an out-of-court settlement program for some 482,000 affected diesel owners across the U.S. Feinberg previously administered the General Motors Co. fund to compensate victims of its defective ignition switches.