Consumer Protection eBrief – 22/03/2013

22 March 2013|In Consumer Protection Act Briefs

In this issue:

  • United States: Audi agrees to a preliminary settlement of class action

United States: Audi agrees to a preliminary settlement of class action

Earlier this month, U.S. Federal Judge A. Howard Matz of California granted a preliminary approval of the settling of a class action matter against Audi over transmission problems in approximately 64,000 vehicles.

The settlement is inclusive of anyone in the U.S. who either rented or purchased an Audi 2002 to 2006 A4 or A6 model with a variable automatic transmission and thereafter encountered problems with the transmission. The class action was originally filed in January 2011 and contended that the continuously variable transmissions had manufacturing and design flaws that caused them to fail.

In the settlement, Audi denied the transmissions were defective and maintained that Audi had “acted properly and in compliance with applicable laws and rules”. However, Audi claims that it is “also mindful of the fact that future protracted litigation, with the burdens and uncertainties it creates, may not be in the best interests of their customers”. Therefore Audi agreed to the settlement of the action based on repair costs, trade-in reimbursement costs, extending maintenance plans and repairs for lost value.

Final approval of the settlement is set for September 2013.

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