Steven Cohen  |  January 29, 2020

Category: Auto News

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FordThe plaintiffs in a class action lawsuit against Ford have asked a federal judge in California to approve a $77 million settlement resolving claims of defective transmissions in some Ford vehicles, stating that class members have already received more than $47 million through an arbitration program.

In their renewed motion for preliminary approval of the settlement, the plaintiffs state that Class Members may be rewarded a cash payment of up to $25,000 or more for returning a vehicle that they could have been driving for many years.

In addition, the plaintiffs state that, in some cases, the Class Members may not need to be in possession of their vehicles to receive the cash payment.

And unlike consumers pursuing individual lemon law cases, who have waited several years for a jury trial, Class Members with valid lemon law claims can obtain complete relief within 3 months after first providing notice to Ford, through a speedy process paid for by Ford,” the motion claims.

The original Ford class action lawsuit was filed by Omar Vargas in September 2012, who claimed that the transmission in the Ford vehicles caused them to slip, buck, jerk, and suddenly accelerate. In addition, Vargas claimed that the transmissions caused delayed acceleration and delays in downshifts.

The class action lawsuit claimed that Ford violated consumer protection laws, breach of express warranty, and breach of implied warranty under the Song-Beverly Consumer Warranty Act.

A settlement in the case was made in October 2017, but that settlement was appealed in February 2018 by objectors who complained that that the deal was not large enough. Those objections have now been withdrawn, according to the motion for preliminary approval.

If the judge approves this round of settlement motions, it would put to rest all claims that the Class Members have had for the defective Powershift transmissions in the 2011 to 2016 Ford Fiesta and 2012 to 2016 Ford Focus models.

“The proposed Settlement is the culmination of lengthy discussions between the Parties, consultation with their experts, comprehensive discovery, and thorough analysis of the pertinent facts and law at issue,” states the motion for preliminary approval of the Ford class action lawsuit.

This new settlement would also include a guarantee by Ford that they would pay a minimum of $30 million for the cash portion of the settlement and a $20 payment to Class Members who claimed that they have been “turned away” from obtaining a transmission repair, among other stipulations.

Under the deal, Class Members who visited their Ford dealers three or more times for service repairs can receive up to $2,325 or a certificate toward the purchase of a new Ford, the motion states. Ford has also agreed to pay up to $8.8 million in attorneys’ fees.

“Due to the settlement’s consumer-friendly rules and speed of resolution, most class Members would do better under the arbitration program rather than in court and Ford has already paid $47.4 million to class members for claims proceeding under the settlement’s repurchase remedy,” states the motion for preliminary approval of the settlement.

Do you own a Ford that is part of this settlement? Leave a message in the comments section below.

The plaintiffs are represented by Ryan H. Wu of Capstone Law APC, Russell D. Paul of Berger & Montague PC and Thomas A. Zimmerman of Zimmerman Law Offices PC.

The Ford Transmission Class Action Lawsuit is Vargas, et al. v. Ford Motor Co., Case No. 2:12-cv-08388, in the U.S. District Court for the Central District of California.

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389 thoughts on$77M Ford Class Action Settlement Approval Requested

  1. Rosa Esquivel says:

    I have a 2014 Ford Escape payed off. My only vehicle and it started giving me trouble about 2 years ago, jerking and stalling also replaced the fuel pump a couple years ago. Was not aware that there was a previous recall on that. Recently it started having issues with the coolant. Would like to join this class action lawsuit as well.

  2. Joseph B. Jernigan says:

    I own a 2017 Ford Edge. We bought it in 2019 and had 65000 miles on it. We drove the vehicle for a year and had issues with it. We took the vehicle back several times to the ford Dealership and told them. They reset the computer and filled water in it. We always had it serviced through our mechanic who does us right. We will have to get the paperwork out of the car to get specifics. We took the car to 3 repair places including Ford dealership and all said the same thing needs new engine. The car has been sitting on our yard now for 2 years still making payments on it. Please help…

  3. Madison Streif says:

    2011 Fordv escape transmission leaks bad around the transmission coolant it has a hard jerk shifting into gear.
    Has left my child and I stranded more than once. I AM CURRENTLY STRANDED RIGHT NOW.

  4. George Sullivan says:

    I have a Ford F-150, 2013. The rear door actuators on both sides have been replaced once, now I must do it again. This is annoying and expensive.

  5. Herbert C Peterson says:

    I have a 2014 Ford Escape 1.6 ecoboost. Only 117,000 moles on it and transmission is toast. Called Ford and they said there was nothing they could do unless there was a recall.
    (F)ound (O)n (T)he (R)oad (D)ead.

  6. Megan Chase/Jordan Chase (owner) says:

    My son bought a 2013 fusion ecoboost 1.6 liter auto tranny and has had nothing but problems with this dam thing since he purchased it back in January of 2018. It was used bit had 1 owner o believe before him. It started with coolant leaking and eventually into the cylinder head causing the 3 rd cylinder to literally weld itself together the threads literally were melted so he had to replace the head. His tranny had been a problem from day one. It had a hard or rough shift in all gears it has a rough idle as if it wants to die on him.

    Back to the engine. Head was replaced in the summer of 2021. On October of 2022 he was on the freeway on his wayvto work at 5 am and he heard noise coming from his car he coasted
    off freeway into a grocery store parking lot. He had lost some oil but not much. When I got to his car I checked the oil dip stick and there was plenty left in the engine. What had happened is that 3 of the cylinders seized up causing the rods to come out of both sides of the engine. He recently purchased a used engine same engine VIN match up/are compatible just 2 years newer it’s a 2015 engine 66,000 miles on it. and it starts up, but the problem now is tthere is no check engine light on and no error codes. But when he puts the car into DR the RPM goes up and when he accelerates it sputters out. The mechanic says that the diagnostic says the transmission says slipping and or is not communicating. But there are zero error codes. Now 5000.00 dollars just this go round within the past 2 and a half months he still out of a vehicle. This poor kid. He busts his butt pays his bills and can not get a break with this dam lemon of a car. Please help.

    1. James Williams says:

      The problem is not in the transmission the most probable cause is a faulty catalytic converter there are two other probable but less likely causes to this problem one being a faulty throttle body or a problem with the fuel pump but since he said it spits and sputters when the loss of power occurs slowing it down to 10mph after he starts accelerating the loss of power most likely
      happens when the vehicle reaches speeds between 35mph-50mph rather than just a loss of power during acceleration. However I have no doubt it’s a faulty catalytic converter🤔

    2. James Williams says:

      Also if he put a used motor in it that’s 2 years newer the computer has to be reset and calibrated to the engine that’s in it now which will allow the ECM to deliver codes for any current issues with his replacement engine

  7. Emily Mull says:

    Had my 2014 ford escape fora few years and had problems with my transmission for years not sure what to do about it but it won’t accelerate hood and going up hill is very jumpy

  8. Susan Dalton says:

    I have a 2014 Ford Focus that has had transmission problems since I got it. Now it quit and I had it towed to the Ford dealership and they charged me $150. to tell me that the antifreeze had leaked into the engine and I need a new engine at a cost of $9,000. Ford refuses to answer any of my requests. This is the most unprofessional bunch I have ever encountered.

  9. Amy Smiley says:

    My 2015 Ford Escape 1.6 Replaced the bushing still died on highway twice almost killed. Now need total transmission replacement. Is there a recall on the Turbo burning up the Transmission? I don’t have $6,144 for a transmission and now I don’t have a car either. Is there any redress? Can I only get the transmission fixed at a Ford dealership in order to qualify for a future recall refund? Thanks

  10. Nichole w says:

    I have a 2009 ford escape that ive had to replace the transmission and its acting up again. Also while driving the power steering went out and had to safety get it home. Also have had it happen with my son in the SUV. Ive had to replace so much stuff on it but yet still habe alot of problems. Between transmission and power steering.

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