Update - $57 Million Settlement Given Final Approval
A $57 million settlement ending the lawsuit detailed on this page has receivedfinal approvalfrom U.S. District Judge Robert N. Scola.
According to thesettlement agreement, the deal covers model year 2009 through 2017 Volkswagen CC vehicles imported and distributed for sale or lease in the U.S. and Puerto Rico by Volkswagen Group of America. Benefits available to class members include two free tire rotations per eligible vehicle by an authorized VW dealer and reimbursement for certain out-of-pocket tire replacement expenses.
To date, roughly 370,000 notices have gone out to those eligible to file claims in the settlement, Judge Scola noted. Volkswagen has admitted no fault in agreeing to the settlement and maintains that the vehicles in question were properly designed and reasonably safe.
Claims must be submitted with proper supporting documentation by April 25, 2020.
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Nine plaintiffs allege in a 77-page class action complaint that Volkswagen Group of America, Inc. and Volkswagen AG released CC vehicle models onto the market that came with faulty suspensions, shocks and struts, which can lead to rapid, uneven wear and even premature degradation of a car’s tires, or “tire cupping.” Filed on behalf of VW CC owners and lessees nationwide, the lawsuit, which covers cars leased or purchased on or after June 1, 2012, alleges Volkswagen has known about the alleged alignment defect for years, yet has offered no remedy to correct the problem. Instead, the case claims, VW owners and lessees are left to replace their vehicles’ tires at their own expense. This is where the true problem lies for proposed class members, the lawsuit argues:
“But, because the alignment defect derives from a defect in the class vehicles’ suspensions, shocks, and struts, it cannot be corrected simply by replacing the class vehicles’ tires. After all, even new tires will cup, degrade, and wear prematurely as a result of the alignment defect—thus causing new and prolonged damages to the class members.”
The alleged alignment defect is an unrepairable, serious safety hazard, as tired-related crashes are more common when tire treads are worn down, the complaint says, citing National Highway Traffic Safety Administration statistics. Still, Volkswagen allegedly kept knowledge of the alignment defect from the public while continuing to advertise the cars as safe and reliable, according to the suit.