Cases & Investigations

Volkswagen and Audi Warranty Extension Litigation

CASE NUMBER: 07-md-1790-JLT
PRACTICE AREAS: Defective Products
PRODUCT: 1997 - 2004 Audi A4s and 1998 - 2004 Volkswagen Passats
CASE STATUS: Settled
SETTLEMENT AMOUNT: $222 million
COURT: United States District Court for the District of Massachusetts

Berger Montague and its co-counsel initiated an action in the U.S. District Court for the District of New Jersey against defendants Volkswagen of America, Inc. and Volkswagen of America, Inc. d/b/a Audi of America, Inc. The action was transferred to the U.S. District Court for the District of Massachusetts before the Judicial Panel on Multidistrict Litigation, and assigned to the Honorable Joseph L. Tauro.

The action was on behalf of owners and/or lessees of model year 1997 through 2004 A4 Audi vehicles equipped with 1.8 liter turbo-charged engines and/or model year 1998 through 2004 Volkswagen Passat vehicles equipped with 1.8 liter turbo-charged engines (“class vehicles”).  Plaintiffs sought injunctive relief on behalf of all current owners and/or lessees of class vehicles, and also seek damages on behalf of those former and/or current class members who have suffered and/or will suffer loss as a result of defendants’ misrepresentations and/or omissions.

Plaintiffs alleged that defendants failed to disclose, despite their longstanding knowledge of the problem, that engines in class vehicles are predisposed to the formation of harmful sludge and deposits that can cause oil starvation and very serious and expensive damage to engines. Plaintiffs also alleged that defendants knew, but failed to disclose, that this engine problem in class vehicles emanates from their defective engine design and/or incorrect oil recommendations in the owner’s manuals and maintenance manuals supplied by defendants. Finally, plaintiffs alleged that defendants’ August 2004 “warranty extension” misrepresents the nature and cause of the engine problem in class vehicles and fails to adequately redress the engine problem in class vehicles.

After the close of discovery, the parties agreed to settle the case.  A Settlement Agreement was signed on September 2, 2010. The settlement is pending court approval.

Lead Attorneys

Merrill Davidoff Headshot

Merrill G. Davidoff

Chairman Emeritus & Managing Shareholder

Request A Free Consultation

  • This field is for validation purposes and should be left unchanged.