Fiat Chrysler in Emissions Cheating Class Action Settlement Talks

Fiat Chrysler is in settlement talks with the U.S. Justice Department to resolve accusations that the company fraudulently represented vehicles’ emissions.

This week, the automobile manufacturer entered into advanced settlement talks with the U.S. Justice Department and California Air Resources Board, to settle a class action lawsuit claiming that the company used software to illegally misrepresent the emissions in more than 104,000 of its diesel vehicles since 2014.

In late 2017, consumers brought forward a multidistrict litigation against Fiat Chrysler claiming that the company used software created by Bosch to defraud emissions testers. Allegedly, the software enabled the diesel vehicles to produce low levels of nitrogen oxides when being tested, only to produce much higher levels — over 20 times the legal limit — of nitrogen oxide when the vehicle was being driven normally.

The consumers claimed that they purchased the vehicles based on advertising that the vehicles were “green diesel” vehicles. Consumers purchased diesel vehicles for the higher fuel efficiency they offer over gasoline vehicles, and their higher torque, or force that the vehicles possess. However, these vehicles allegedly are less environmentally friendly than gasoline vehicles, producing more emissions.

So, consumers claim that they purchased the Fiat Chrysler “green diesel” vehicles because they provided the best of both worlds — the benefits of a diesel vehicle with less harm to the environment. The consumers say the vehicles were misrepresented and that they would not have purchased the vehicles or would not have paid as much for them had they known that they produced more emissions than advertised.

Fiat Chrysler denies any wrongdoing on their part, alleging that they never attempted to defraud emissions regulators. Early on in the legal process, the company argued that consumers can’t claim a concrete financial injury from the alleged emissions fraud. They allege that the consumers’ claims are really an effort to enforce the Environmental Protection Agency’s regulations, and that consumers do not have power to do that — only the EPA itself does.

Nonetheless, current settlement talks to resolve the Fiat Chrysler emissions fraud multidistrict litigation propose consumer-related provisions to compensate vehicles owners who purchased affected vehicles. The possibility of Fiat Chrysler paying state and federal fines are also in discussion, but the amounts of either have not been disclosed.

Additionally, the company states that it believes it can use newly updated emissions software in 2017 vehicles to address emissions software problems in the 2014, 2015, and 2016 vehicles, noting that they did win federal and California state approval to sell the 2017 vehicles after they were sued by the Justice Department in 2017 over the same issues.

The Fiat Chrysler emissions software multidistrict litigation is still in settlement talks, with more rounds of negotiation scheduled for later this month and in May. Lawyers state that they estimate a settlement will be finalized this summer.

The consumers are represented by Elizabeth J. Cabraser, David. S. Stellings, Kevin R. Budner, Phong-Chau G. Nguyen and Wilson M. Dunlavey of Lieff Cabraser Heimann & Bernstein LLP and by 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, Steve W. Berman of Hagens Berman Sobol Shapiro LLP, Joseph F. Rice of Motley Rice LLC, David S. Casey Jr. of Casey Gerry Schenk Francavilla Blatt & Penfield LLP, Lynn Lincoln Sarko of Keller Rohrback LLP, Rachel L. Jensen of Robbins Geller Rudman & Dowd LLP, and Stacey P. Slaughter of Robins Kaplan LLP.

The Fiat Chrysler Fraudulent Emissions Multidistrict Litigation 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: On Aug. 29, 2018, plaintiffs in a Fiat Chrysler emissions class action argued that they are direct victims of the alleged emissions cheating scheme, qualifying them for RICO claims.

UPDATE 2: On Oct. 17, 2018, Fiat Chrysler asked a federal judge to reject consumers’ bid for Class certification in an EcoDiesel multidistrict litigation, because the company says the consumers’ expert is unreliable.

UPDATE 3: On Jan. 10, 2019, Fiat Chrysler will pay up to a total of $884 million to end allegations that the company installed software in some of its diesel vehicles that enabled the vehicles to perform at legal emissions standards during testing and then produce much more pollution than is legally allowed when the vehicles are driven normally.

UPDATE 4: On Jan. 23, 2019, a federal judge recently revealed that he’s “very much inclined” to grant preliminary approval to a $307 million Fiat Chrysler emissions settlement.

UPDATE 5: March 2019, the Jeep Grand Cherokee, Ram 1500 EcoDiesel class action settlement is now open. Click here to file a claim.