Fiat Chrysler Settles Transmission Defect Class Action Lawsuit

Last week, two plaintiffs asked a New Jersey federal judge to preliminarily approve a class action settlement over allegations that certain Fiat Chrysler vehicles had transmission defects.

If approved, the proposed Fiat Chrysler settlement would resolve more than two years of litigation over allegations that certain vehicles manufactured by FCA US LLC equipped with the nine-speed ZF 9HP automatic transmission had a defect that caused transmission problems.

According to the FCA transmission defect class action lawsuit, the ZF 9HP transmission was meant to incorporate the best attributes of traditional manual and automatic transmissions to achieve better performance and fuel efficiency.

However, the ZF 9HP transmission caused shifting to be rough and erratic, and drivers allegedly experienced loud noises while shifting, the Fiat Chrysler transmission defect class action lawsuit alleges.

Plaintiffs Dolores and Albert Granillo and Desiree Nava each own a Jeep Cherokee equipped with the ZF 9HP, and they claim that they experienced the Fiat Chrysler transmission defect during the first year of driving their vehicles.

The plaintiffs say they complained to FCA dealers about their transmission problems and, in response, the dealers updated the software on the powertrain control module and transmission control module in each of their vehicles. However, this attempted repair did not fix their transmission problems. They filed the Fiat Chrysler transmission defect class action lawsuit in July 2015.

According to the court documents, the Fiat Chrysler transmission defect settlement was reached following two mediations. “This settlement reflects a vigorous negotiation of terms, resolving the matter approximately a year after the first mediation,” the plaintiffs say.

Class Members of the proposed FCA transmission defect settlement include current owners and lessees of new vehicles manufactured by FCA equipped with the nine-speed ZF 9HP automatic transmission.

The proposed Fiat Chrysler settlement will provide all eligible Class Members with an extended warranty. Class Members who made at least three qualifying transmission complaints to FCA US dealers would be entitled to a cash payment of up to $2,000 or a voucher for a trade-in for up to $4,000.

“These cash payments will compensate Class Members even though they did not incur out-of-pokcet costs for warranty repairs, which makes this settlement distinct from other types of settlements in which the primary benefit is reimbursement,” the plaintiffs say in their motion.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

The plaintiffs are represented by Howard A. Gutman of the Law Offices of Howard A. Gutman and by Jordan L. Lurie, Tarek H. Zohdy, Cody R. Padgett and Karen L. Wallace of Capstone Law APC.

The Fiat Chrysler Transmission Defect Class Action Lawsuit is Granillo, et al. v. FCA US LLC, et al., Case No. 3:16-cv-00153, in the U.S. District Court for the District of New Jersey.

UPDATE: November 2018, the Fiat Chrysler transmission defect class action settlement is now open. Click here to file a claim.