Karina Basso  |  October 30, 2014

Category: Consumer News

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Porsche class action settlementOn Oct. 27, a California federal judge allowed an objector to the Porsche engine defect class action lawsuit to withdraw her objection. This was the last obstacle standing between final approval for the $4 million engine defect class action settlement to be paid by Porsche Cars North America Inc. to a Class of current and previous car owners of nearly 58,000 Boxster and 911 model vehicles.

Jill Weitzner, the objector, will receive financial consideration for dropping her objections to the Porsche engine defect class action settlement. This consideration amount will be taken out of the Class counsel’s settlement share. With this decision, this Porsche class action lawsuit, which has been going on since 2011, may be drawing to a close and the nationwide Class will hopefully receive compensation soon.

According to the Porsche engine class action lawsuit, the plaintiffs allege the engines installed in the Boxster and 911 Porsche vehicles are inherently defective in design, manufacturing, and assembly. This engine failure, allegedly caused by an intermediate shaft condition, results in mechanical failures, engine failure or damage.

Porsche and the plaintiffs agreed on a $4 million engine defect class action settlement last year and the settlement was granted preliminary approval by the court in April 2013. According to the claims administrator for the Porsche class action settlement, there are more than 235,000 potential Class Members. As of January of this year, the claims administrator received and processed 3,275 engine defect claims. Of the claims received, 544 claims were eligible for prenotice reimbursement. Additionally, 243 Class Members opted out of the settlement and 53 raised objections to the settlement agreement.

In January, U.S. District Judge Christina A. Snyder granted final approval to the Porsche engine defect class action settlement. However, the Porsche settlement was put on hold when Weitzner filed her objection to the 9th U.S. Circuit Court of Appeals in February, alleging that “due to an unfair and arbitrary distinction,” she was ineligible to recovery under the Porsche class action settlement. In her objection, Weitzner also stated she was seeking to either opt out or be readmitted to the Class.

As of late September, Weitzner agreed to drop the appeal, which allowed the Class counsel to file a motion to approve Weitzner’s withdrawal of objections. This final legal move will allow the Porsche engine defect class action settlement to move forward and pave the way for Class Members who submitted claims to receive the benefits they have been waiting for.

Under the terms of the Porsche class action settlement, Class Members who filed valid claims no later than Oct. 15, 2013 will be eligible to receive a reimbursement for money they spent replacing or repairing the engine up to 10 years after the vehicle was placed in-service or up to 130,000 total miles on the vehicle (whichever comes first). Porsche also agreed to pay up to $200 toward documented towing and/or car rental fees related to intermediate shaft failure.

More information about the Porsche class action settlement is available at www.IMSPorscheSettlement.com.

The plaintiffs and Class are represented by Stephen M. Harris, Barry R. Gammell and K.L. Myles of Knapp Petersen & Clarke.

The Porsche Engine Defect Class Action Lawsuit is Bruce Eisen, et al. v. Porsche Cars North America Inc., Case No. 2:11-cv-09405, in the U.S. District Court for the Central District of California.

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