Facts

Various vehicles from Mercedes Benz's 2004 through 2017 model lines were equipped with the color "Mars Red." Emily Pinon brought a class action against Daimler AG and Mercedes Benz USA LLC alleging the class vehicles that were painted in "Mars Red" had serious defects that causes the exterior surface of the vehicles to microblister, peel, and bubble.

PLAINTIFFS' CONTENTIONS: Plaintiffs contended defendants breached their expressed and implied warranties by continuing to sell the defective vehicles and refusing to remedy the issues. Plaintiffs contended defendants knew or should have known the issues with the "Mars Red" paint prior to the sale of the class vehicles but continued to manufacture, market, and sell the class vehicles with defective paint. Plaintiffs contended defendants willfully concealed the defect and knew of the defect based on manufacturer communications with the National Highway Traffic Safety Administration.

DEFENDANTS' CONTENTIONS: Defendants denied all of the contentions, including any and all charges of wrongdoing or liability, or allegations of defect.

Result

The parties settled the case. Under the terms of the agreement, class members are entitled to two benefits: (1) reimbursement for certain qualified past repairs and (2) coverage for qualified future repairs related to the Mars Red paint or clear coat peeling, flaking, or bubbling. The settlement will not take effect until final approval has been granted by the court and any appeals have resolved in favor of the settlement. The settlement does not admit liability or wrongdoing on the part of Defendants.