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 Those objections have now been withdrawn, according to the motion for preliminary approval.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. Rachael Gloria Melland says:

    I own a ford escape 2013 with a transmission needing replacement. Not sure if I qualify for lawsuit?

  2. C Kaczmarek says:

    I have a 2014 Ford Focus that has had the TCM replaced/adjusted (?) 3 times, at no cost to me, however, there is still an issue. The last time was in June 2023, and I now have a letter from Ford advising the I have a one-time replacement available to me until June 30, 2025, which means, that while they have figured out its a continuous issue, no one is willing to offer a buy back. Is there anything I can do?

  3. Shakir Shakir says:

    I had 2016 Ford escape. Had a rebuilt the entire transmission in 2022. Am i entitled for reimbursement.

  4. Emma Rucker says:

    My 2018 ford escape had coolant leak and engine issues. There is also eco boost on my vehicle. I found out recently that it will cost 11-12K to get it fixed. That almost the same I got a loan for. The head gasket, radiator and the entire engine needs replaced. I only had my car for around two months then started having issues. My car over heated two times, didn’t find out about this class action law suit until now.

  5. Derek says:

    I own a 2011 Ford Fiesta. Ford has made me an offer to buy it back from me. I am trying to find out if I should accept their offer or not.
    I am curious about getting more than they are offering, especially since it is a bad time to be buying a used or new car.

  6. Zoie katlyn Kelly says:

    Hello there, I went through Cavender Toyota, I had just financed a 2019 Ford Flex at the time. 5 days after signing the paperwork, the transmission caused the vehicle to ALSO slip, buck, jerk, and suddenly accelerate. The vehicles transmissions ALSO caused delayed acceleration and delays in downshifts. I took it back to the dealership and they claimed “There’s nothing wrong with it… I drove it 20 times around the block, and it drives fine.” I was pregnant at the time as well. I got back in, and it was doing the exact same things all over again as I as leaving the dealership. The dealership stated “well there’s nothing wrong with the car so there’s nothing we can do. If you want to leave it here that’s fine. Otherwise there’s nothing I can do.” The car was a lemon. My father and brother came up there only to find out the entire transmission was bad. They tried lied saying there was nothing wrong when in fact there was. The car in now gone as it was totaled in a car accident while I was 8 months pregnant. I now owe 10,000 still on that car since I did not purchase gap at the time causing me a large loss. Driving this vehicle was super scary considering I was pregnant, and it would randomly stop driving on the highway and roads. I’ve never had this issue with ANY CAR. This is my first and last Ford that I will ever purchase. Horrible experience adding to my pregnancy.

  7. Lori Isenhower says:

    I owned a 2016 Ford Escape that had problems from the start, but most recently my 2019 Ford Ranger has been shifting hard like it does not want to go into gear, and it does some weird hop.

  8. ZACHARY POORMAN says:

    I WOULD LIKE TO BE ADDED I OWN A 2016 FORD FUSION SE AWD. THE VEHICLE SEEMS TO BUCK HARD BETWEEN 2ND AND 3RD AND I CAN NOT TELL IF IT IS WHEN IT SWITCHES FROM AWD TO FWD OR NOT

  9. Madison Streif says:

    I bought a 2011 Ford Escape. It has a very bad transmission leak on the line that goes from the transmission to the transmission coolant it is all over the front of my motor.. It slips sometimes won’t go. I have to add alot of transmission fluid and radiator fluid. My AC won’t cool and my heater only blows on high. It smokes and when it dont go in direction of my steering column. Driving me into other lanes out off the road. I am a single mother and can’t afford to buy another vehicle. I wonder if one can still get help?

    1. Lorena Marshall says:

      I have been on this site multiple times to see if anyone replied to my daughter’s cry for help and the hasn’t been one response to her.

  10. Madeline kinne says:

    I would like to be added to this. I have a 2015 ford escape se 2.0. It has had issues since I got it with a slipping transmission that no one ever believed me about or diagnosed. Now the car is really having issues and the transmission is going out. Please contact me. I’m at a loss. I don’t know what to do anymore. I’ve put so much money into this car.

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