Judge Grants Final Approval to Mercedes Defective Engine Class Action Settlement

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A California federal judge has granted final approval to a class action settlement to resolve allegations against Mercedes-Benz U.S.A. LLC that several of its vehicles were made with defective engines.

U.S. District Judge Thelton E. Henderson overruled the 19 objections made by Class Members, saying that the terms of the Mercedes class action settlement provides significant monetary relief; that the $4,000 cap for repairs that were not done by authorized Mercedes mechanics is fair, reasonable and adequate; and that there is not sufficient evidence to prove that the value of their vehicles has been diminished.

The terms of the class action settlement were “determined by a vigorously-disputed and highly-negotiated schedule according to the number of miles driven or the amount of time the subject vehicles has been on the road,” Judge Henderson wrote in his Aug. 17 order following the final approval hearing.

The California federal judge said that the “Plaintiffs acknowledge” that despite “these challenges and in light of these risks, the settlement’s reimbursement and extended warranty schedules are reasonable and a fair compromise for the class.”

Mercedes agreed to the defective engine class action settlement on March 23.

The Mercedes class action settlement is for “all current and former owners and lesses of Mercedes-Benz branded automobiles equipped with M272 or M273 engines bearing serial numbers up to 2729..30 468993 or 2739 ..30088611, found in the Subject 2005 – 2007 Model Year Vehicles respectively (the ‘Subject Vehicles’), who purchased or leased their Subject Vehicles within the United States.”

The first defective engine class action lawsuit was filed against Mercedes in 2010 in a New Jersey federal court over alleged problems with the M272 or M273 engines.

“The engines are equipped with defective gears in their balance shafts (in the event of the M272 engines) or with defective idle gears (in the case of the M273 engines),” the Mercedes class action lawsuit alleged.

“These defective gears wear out prematurely, excessively, and without warning, causing the vehicle to malfunction, the ‘check engine light’ to remain illuminated, and the vehicle to misfire and/or stop driving,” the complaint added.

This class action lawsuit was filed in October 2012 by plaintiffs Majeed Seifi and Tracey Deakin, which made similar claims as the 2010 lawsuit.

Under the terms of the Mercedes class action settlement “Class Members will be reimbursed for repairs they had to fund to the tune of thousands of dollars due to the alleged engine defect as well as “future repairs for the allegedly defective parts at issue for the lesser of 10 years or 125,000 miles, subject to certain conditions and limitations.”

“This extended coverage more than doubles the durational limit of MBUSA’s New Vehicle Warranty’s term of the lesser 4 years or 50,000 miles,” it adds.

“The percentage of replacement costs reimbursed or to be paid by MBUSA for future repairs was determined by a vigorously-disputed and highly-negotiated schedule according to the number of miles driven or the amount of time the subject vehicles have been on the road,” Judge Henderson wrote in his final approval of the class action settlement.

The amount Class Members will receive will vary. Repairs not done at an authorized Mercedes dealer will result in a reimbursement up to $4,000.

Mercedes will also cover the cost to repair future engine problems, which will also vary depending on the age of the car when the problems come to fruition. The reimbursement will be 100 percent, 70 percent or 37.5 percent of the cost of the repair, depending on how old or how many miles were on the vehicle at the time of the repair.

Mercedes denies any wrongdoing but has agreed to the class action settlement to avoid the costs and risks associated with going to trial.

The deadline to file a claim for the Mercedes class action settlement is Sept. 24, 2015. Click here or visit www.BalanceShaftSettlement.com for more information.

The Mercedes-Benz Engine Defect Class Action Lawsuit is Majeed Seifi, et al. v. Mercedes Benz USA LLC, Case No. 3:12-cv-05493, in the U.S. District Court for the Northern District of California.