Mercedes to Reimburse for Peeling Paint Defect Under Class Action Settlement

Under the terms of a newly proposed class action lawsuit settlement, Mercedes-Benz will reimburse the owners of cars it produced that have a peeling paint defect.

The defect, which affected various Mercedes vehicles manufactured between 2004 and 2018 that were coated in the company’s 590 Mars Red paint, caused the paint to develop blisters and bubbles and to peel, according to the class action lawsuit. Mercedes-Benz has agreed to reimburse the owners for repairs they have already paid for and to extend the warranties on affected vehicles to cover any future repairs to a maximum of 15 years from the vehicle’s production.

The deal was hashed out after a successful round of mediation with retired U.S. District Judge James F. Holderman in November, according to the request for preliminary approval of the proposed settlement, which was filed Dec. 21.

Lead plaintiffs Emily Pinon, Gary C. Klein, Kim Brown, Joshua Frankum, Dinez Webster and Todd Bryan first filed the class action lawsuit in U.S. District Court for the Northern District of Georgia, Atlanta Division, in August 2018.  Each either owned or leased a Mercedes finished with 590 Mars Red paint that allegedly had bubbled, peeled or both, according to the settlement.

Mercedes-Benz USA LLC and Daimler AG are the named defendants. They deny any wrongdoing and insist the 590 Mars Red paint does not produce a peeling paint defect.

The exact amount of reimbursement will vary depending on the age of the vehicle at the time the repairs were made, the proposed settlement says.

Owners or lessees of affected vehicles less than 7 years old or with fewer than 105,000 miles on them will qualify for a full reimbursement or extended warranty coverage.

Those between 7 and 10 years old will be eligible for a 50% reimbursement.

Finally, owners and lessees with affected models between 10 and 15 years old and fewer than 150,000 miles can get a 25% reimbursement, the settlement says.

Also, under the terms of the proposed settlement, the six lead plaintiffs will be granted service awards of $5,000 each for their participation in the class action lawsuit. Their lawyers will receive a maximum of $4.74 million.

“The settlement provides exceptional benefits that directly address the harm to Class Members,” the request for preliminary approval of the settlement says. It was reached after “hard fought” negotiations and is fair to both sides of the peeling paint defect case, the lawyers wrote.

Do you own or lease a Mercedes-Benz model year 2004-2018 with 590 Mars Red paint? Has it bubbled, blistered or peeled? Tell us about it in the comment section below.

The lead plaintiffs and the proposed Class Members are represented by James F. McDonough III, Jonathan R. Miller and Travis E. Lynch, W. Lewis Garrison Jr. and Taylor C. Bartlett of Heninger Garrison Davis LLC and K. Stephen Jackson of Jackson & Tucker PC.

The Peeling Paint Defect Class Action Lawsuit is Emily Pinon, et al. v. Mercedes-Benz USA LLC, et al., Case No. 1:18-cv-03984, in the U.S. District Court for the Northern District of Georgia, Atlanta Division.

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