Volkswagen agreed this summer to spend as much as $15 billion to settle lawsuits and complaints about the cheating.
But Vermont Attorney General William Sorrell said Thursday the state has rejected as inadequate part of the proposed settlement that would have paid the state about $1,000 per vehicle for violating consumer protection laws.
On a per capita basis, Vermont bought more of these vehicles than any state other than Oregon, Sorrell said, estimating that 3,400 such vehicles were registered in the state as of last year.