Audi, Volkswagen Agree to Settlement, Including $2.3M in Attorney Fees

Volkswagen AG and Audi AG have agreed to a class action settlement that includes $2.3 million in attorney fees as well as costs for customers’ repairs incurred to repair damage caused by allegedly defective engines that consume too much oil.

The class in the Audi class action lawsuit filed a motion on Sept. 22 asking U.S. District Judge Margaret M. Morrow to grant preliminary approval for the class action settlement. There is a hearing with the California federal judge on Oct. 20.

As part of the Audi class action settlement agreement, class members who either own or lease Audi A4s or A5s and Volkswagen vehicles sold from 2007 to 2013 that are made with 2.0 liter turbocharged engines, which totals about 126,000 vehicles, can participate in the settlement. These engines have the engine code “CAEB.”

The settlement agreement includes a service adjustment for owners or those who lease Audi vehicles with the CAEB engine. The Audi customers will receive “(1) a replacement of the crankcase pressure regulating valve, front crankshaft seal and front crankshaft bolt, and (2) updating of the Engine Control Module software to match the new part(s).” This repair will reduce the amount of oil used by the vehicle and will be made “free of charge, by an authorized Audi dealer.”

To receive this repair free of charge, the class member will need to schedule the appointment within 18 months of the Class Notice date.

In addition, class members will also be reimbursed for all costs they incurred to have the repairs done at an authorized Audi dealer before the Class Notice date.

In order for class members to receive their reimbursements, they will only need to fill out a “simple claim form to the administrator, along with basic documentary proof necessary to establish out-of-pocket expenses.” At that point, they will be “promptly reimbursed.”

Class members in the Audi class action settlement will also receive a  warranty extension “from 4 years/50,000 miles to 8 years/80,000 miles “to cover any repair needed to correct excessive engine oil consumption.”

“The warranty extension will also cover any oil consumption test performed by Audi dealers in connection therewith,” the motion explains.

Audi and Volkswagen have also agreed to $2.3 million in attorney fees and $100,000 toward expenses.

The class representatives will also receive $2,500 in service payments “for their efforts on behalf of Class members.”

The Audi class action lawsuit was filed in May 2012 by plaintiff Ali Aghari in the federal court in Northern California, alleging there were engine defects in certain Volkswagen and Audi vehicles “that cause them to burn off and/or consume abnormally high amounts of oil.”

The defective engine class action lawsuit was transferred to the federal court in Central California at the request of Audi and Volkswagen. Prior to that, plaintiff Yung Kim’s lawsuit making similar allegations filed in California state court was transferred to the Northern California federal court. A third Audi class action lawsuit was filed by plaintiff Ara Dersarkissian in a California state court in September 2013. Her lawsuit was dismissed and she was added to this class action.

Some of the allegations were dismissed in a November 2013 decision.

The plaintiffs are represented by Jordan L. Lurie and Cody R. Padgett of Capstone Law APC, Payam Shahian and Chris Swanson of Strategic Legal Practices APC, and Dara Tabesh of EcoTech Law Group PC.

Volkswagen and Audi are represented by Craig L. Winterman, Jeffrey L. Chase and Michael B. Gallub of Herzfeld & Rubin PC.

The Audi Class Action Lawsuit is Ali Asghari, et al. v. Volkswagen Group of America Inc, et al., Case No. 2:13-cv-02529, in the U.S. District Court for the Central District of California.

UPDATE: A California federal judge approved the Audi oil consumption class action settlement on May 29, 2015. Class Members must meet certain deadlines in order to claim settlement benefits such as free repairs, an extended warranty and reimbursement of out-of-pocket expenses. Learn more.