VW & Audi Product Defect Lawsuit Settlement

A nationwide class action settlement with a value of $80 million, including class benefits and attorney fees and expenses, was approved on August 2, 2010 in a 100-page decision by United States Magistrate Judge Patty Shwartz of the District of New Jersey.  The total benefits reach $85 million when the administrative expenses of $5.75 million are factored in.

Our law firm represented 5.5 million owners and lessees of 3 million 1997-2009 Volkswagen and Audi automobiles with defects in their sunroof and fresh air plenum drainage systems.  The defects led to clogging of drains and drain valves, resulting in damage to vehicle interiors and certain electronic components.  The comprehensive settlement provides millions of dollars in reimbursements, tens of millions of dollars in vehicle modifications to be paid for by VW and Audi, and necessary maintenance instructions to prevent future incidents of water damage, nearly $10 million in fees and expenses awarded by Judge Shwartz to the attorneys representing the Settlement Class, and $5.75 million in administrative expenses to be paid by VW and Audi.

This settlement is notable as it marks one of the few nationwide automotive class action lawsuits that have resulted in a settlement approved by a Federal Court.   The settlement represents the culmination of more than 3 years of litigation and Court proceedings, and is a significant victory for consumers, as the relief extends to millions of Class Members who would have otherwise been denied any relief based on VW and Audi’s prior warranty practices


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