$307M Fiat Chrysler Emissions Class Action Settlement Nears Approval

A federal judge recently revealed that he’s “very much inclined” to grant preliminary approval to a $307 million Fiat Chrysler emissions settlement.

The multi-million dollar settlement would resolve claims that the car manufacturer equipped their diesel vehicles with emissions cheating devices.

“The number one goal in this case is to get a fix done,” U.S. District Judge Edward M. Chen said. “Every day it’s not done, we have 100,000 cars that are on the road emitting dangerous [emissions] into the environment.”

Although Judge Chen said he is likely to grant the settlement preliminary approval, he also asked for a few changes to be made before he approves the settlement. He requested that the parties “tune up” the notice for the settlement so that Class Members are clearly informed that they must have their cars fixed at a dealership before filing a settlement claim.

Judge Chen also requested that attorneys’ fees be agreed upon before sending the settlement notice to Class Members. Other changes requested by the California federal judge include data collection on the effectiveness of using social media and print ads in reaching Class Members. This data would be used by the courts in the future to help with settlement processes.

Defendants and plaintiffs have agreed to the changes, and a final approval hearing has been tentatively scheduled for May 3.

The $307 million settlement will bring an end to multidistrict litigation claims that FCA vehicles with 3.0-­liter V6 diesel engines were equipped with emissions cheating software which helped cars pass emissions testing. Affected vehicles allegedly include model years 2014 to 2016 Ram 1500 and Jeep Grand Cherokee vehicles.

Fiat Chrysler attempted to dismiss the consolidated class action in December 2017 by arguing that consumers have not sustained injury in the form of loss of value. However, plaintiff claims remained alive despite Fiat Chrysler’s repeated attempts due to the consumers’ repeated arguments against motions for dismissal.

The emissions settlement will mark the end of the turbulent litigation process but is not the only settlement Fiat Chrysler has agreed to. Earlier this month, the company agreed to pay $884 million to resolve several complaints against them by plaintiffs as well as federal and state governments.

The company agreed to pay $305 million in a civil penalty for allegedly violating the Clean Air Act, an amount that will be split between the federal government and the state of California. According to court documents, $6 million will be paid to U.S. Customers and Border Protection to resolve claims that it illegally imported noncompliant vehicles. Finally, $72.5 million will be paid to resolve state law claims in states other than California.

Plaintiffs are represented by lead counsel Elizabeth J. Cabraser, David. S. Stellings, Kevin R. Budner, Phong-Chau G. Nguyen, Katherine McBride and Wilson M. Dunlavey of Lieff Cabraser Heimann & Bernstein LLP and steering committee members Roland K. Tellis of Baron & Budd PC, W. Daniel Miles III of Beasley Allen Crow Methvin Portis & Miles PC, Lesley E. Weaver of Bleichmar Fonti & Auld LLP and Stacey P. Slaughter of Robins Kaplan LLP, among others.

The Fiat Chrysler Emissions Cheating Software Class Action Lawsuit is In re: Chrysler-Dodge-Jeep EcoDiesel Marketing, Sales Practices and Products Liability Litigation, Case No. 3:17-md-02777, in the U.S. District Court for the Northern District of California.

UPDATE: March 2019, the Jeep Grand Cherokee, Ram 1500 EcoDiesel class action settlement is now open. Click here to file a claim.