angelman: Yes, simply tossing in a new HPFP just doesn't work, based on countless posts here that HPFP replacement requires a virtually "clean room" shop area to do it right, otherwise the replacement will fail, sometimes instantly.
You could certainly attempt to go after VW for your troubles. I would advise that you're wasting your time. You've now been burned by VW, along with countless others, and any sort of suit will be many years away before any sort of resolution.
I'm sorry for you, but your situation is a wake-up call for me, a reminder that I need to park my 2009 JSW alongside my 2014 Passat, prior to the buyback.