Facts

Ali Asghari, Daniel Tran, Yung Kim, Ara Dersarkissian, and Katrina Noble filed a class action against Volkswagen Group of America Inc., Volkswagen AG, and Audi AG, concerning certain Audi vehicles.

PLAINTIFFS' CONTENTIONS:
Plaintiff alleged that the subject vehicles, which were manufactured and distributed by defendants, contained defective engines. Plaintiffs alleged that the defective design and manufacturing defects caused the engines to be, among others, unable to properly utilize the engine oil and cause improper burn off engine oil, thereby leading to abnormally high engine oil consumption.

Plaintiff asserted claims for violations of California Consumer Legal Remedies Act, violations of California's Unfair Business Practices Act, violations of New York's Consumer Protection From Deceptive Acts and Practices Act, Violation of the Magnuson-Moss Warranty Act, breach of express warranty condition under California law, violations of express warranty under New York law, and breach of implied warranty pursuant to the Song-Beverly Consumer Warranty Act.

DEFENDANT'S CONTENTIONS:
Defendants denied plaintiffs' allegations. Defendants contended the Class Vehicles do not consume excessive amounts of oil, are not defective and were properly designed. Defendants further contended that they complied with all warranties and did not violate any applicable statutes.

Result

The parties reached a settlement, which provided for service adjustments, which included replacement of parts and updates to the vehicles' software to reduce excessive oil consumption. Volkswagen also agreed to extend the warranty. In addition, Volkswagen agreed to pay attorney fees and costs of up to $2.4 million, and $2,500 in service payments as to each named plaintiff.

Other Information

FILING DATE: April 10, 2013.