Volkswagen is preparing to pay $10 billion as part of a settlement for its diesel-emissions cheating scandal.

Volkswagen Group will pay $10 billion as part of a settlement, including government fines and as much as $7,000 in compensation for owners of vehicles that have the now infamous diesel emissions cheat device.

According to multiple reports, the deal will be filed in federal court early next week, and follows the confirmation by the German automaker in April that it had reached a deal with U.S. and California regulators as well as a class-action group of owners of 500,000 2.0-liter diesels.

The deal included options to repair the vehicle or to sell them back to VW. The details of the repair plan have not been revealed, but it’s possible that some of the vehicles may not be fixable, according to Bloomberg News.

The settlement is also expected to include a deal in which Volkswagen will fund “green automotive” initiatives, including clean air grants, and environmental remediation efforts. Volkswagen has been negotiating the settlement with federal and state regulators, the Justice Department and consumer lawyers, but the progress of those talks has not been revealed as U.S. District Judge Charles Dryer, who is overseeing the case, has issued a gag order.

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The automaker admitted that since 2009 it rigged cars to pass U.S. Environmental Protection Agency and California Air Resources Board emission tests. No details have been released about how the amount of compensation to car owners will be determined. Bloomberg reports that the calculation is complicated is likely to further harm the relationship that Volkswagen has with car owners.

There have been three versions of the 2.0-liter diesel sold in the U.S., and the problems associated with VW may have killed the diesel market here.

As for a diesel remediation fund, it appears that VW’s will be modeled on one from the Diesel Emissions Reduction Act that is used in states with severe diesel pollution. The program funds projects to scrap and replace diesel-based bus fleets as well as retrofitting older buses.

The news comes on the heels of the opening of an investigation by German authorities of Volkswagen’s senior leadership and how they handled the news of the problem.

The complaint filed with prosecutors in Braunschweig, Germany, by Bafin, the German agency responsible for policing corporate misfeasance, is a blow for VW Chairman Hans Dieter Poetsch and CEO Matthias Mueller, who were both members of the management board – as finance chief and head of the Porsche brand respectively – when the emissions scandal erupted.

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The scandal also led to imposition of tougher emission testing standards across Europe.

The prosecutors in Braunschweig said this week they were investigating former VW CEO Martin Winterkorn. Germany’s financial watchdog has called on prosecutors to investigate Volkswagen’s entire former management board, including Poetsch and Mueller, over the time it took to disclose the carmaker’s emissions test cheating, a person familiar with the matter told Reuters.

Volkswagen also confirmed that prosecutors were probing VW brand chief Herbert Diess as part of an investigation into whether the company violated disclosure and market manipulation rules.

The question is whether or not VW managers were negligent by taking too long to disclose the carmaker’s involvement in an emissions test cheating scandal which violated clean air rules.

Bafin now apparently suspects the entire management board in place last year could be held collectively responsible for how the scandal was communicated to markets.

(To see more about former VW CEO Winterkorn’s criminal investigation, Click Here.)

Klaus Ziehe, a spokesman for the Braunschweig prosecutor’s office, declined to provide details on Bafin’s complaint, but said the office’s investigations could be widened or narrowed. However, Ferdinand Piech, VW’s long-time chairman, had left the board several months prior to the disclosure of the emission scandal.