In re: ZF-TRW Airbag Control Units Products Liability Litigation
Published: Nov. 24, 2023 | Result Date: Aug. 15, 2023 | Filing Date: Aug. 8, 2019 |Case number: 2:19-ml-02905-JAK-MRW Settlement – $78,500,000
Judge
Court
CD CA
Attorneys
Plaintiff
Roland K. Tellis
(Baron & Budd PC)
Defendant
Michael L. Mallow
(Shook, Hardy & Bacon LLP)
Rachel A. Straus
(Shook, Hardy & Bacon LLP)
Facts
There were 53 plaintiffs named in the Amended Class Action Complaint (ACAC), who purchased or leased vehicles from nine different corporate groups, ZF, STMicro, Kia, Hyundai, Hyundai Mobis, Fiat Chrysler, Toyota, Honda, and Mitsubishi. The complaint alleged defects related to ZF-TRW airbag control units (ZF-TRW ACUs). The ACUs receive and interpret signals crash sensors located on the front of vehicles to issue commands to deploy airbags and tighten seatbelts to protect passengers from an imminent collision. The Toyota subgroup of this complaint included Toyota Motor Sales U.S.A, Inc., Toyota Motor Engineering & Manufacturing North America, Inc., Toyota Motor North America, Inc., and Toyota Motor Corporation. The complaint class included all persons or entities who own/lease or previously owned/leased the subject vehicles distributed for sale or lease in the United States. On January 17, 2020, Toyota recalled certain subject vehicles including, the 2011-2019 Toyota Corolla, 2011-2013 Toyota Corolla Matrix, 2012-2018 Toyota Avalon, 2013-2018 Toyota Avalon HV, 2012-2019 Toyota Tacoma, 2012-2017 Toyota Tundra, and 2012-2017 Toyota Sequoia.
Contentions
PLAINTIFFS' CONTENTIONS: Plaintiffs contended that the ZF-TRW ACUs equipped in the subject vehicles were vulnerable to a condition called electrical overstress, which may cause in the vehicles' airbags and other features to fail during a collision. Further, plaintiffs that defendants have known about the alleged defect for several years and that defendants' fraudulent statements about the condition caused economic losses to plaintiffs by causing them to pay more than they otherwise would have for their vehicles or to purchase vehicles they would not otherwise have acquired. Plaintiffs sought reimbursement for certain reasonable out-of-pocket expenses recalled to defendants' recall, an extended new parts warranty for recalled vehicles, potential residual distribution payments of up to $250 for each class member, a robust subject vehicle inspection program, an outreach program to provide additional notification to class members of the recall, and a potential rental car reimbursement and outreach program for any related future ZF-TRW ACU recalls.
DEFENDANTS' CONTENTIONS: Defendants denied all contentions.
Result
Defendants agreed to pay $78.5 million in cash and credits in addition to an Extended New Parts Warranty, loaner vehicle program, and other benefits.
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