BMW class action claims transfer cases in luxury vehicles are defective

BMW class action lawsuit overview:

• Who: Four BMW drivers filed a class action lawsuit against BMW of North America LLC and Bayerische Motoren Werke AG (BMW).
• Why: The plaintiffs claim BMW sold certain vehicles with defective transfer cases.
• Where: The class action lawsuit was filed in New Jersey federal court.

A new class action lawsuit alleges BMW sold certain vehicles with defective transfer cases that affected their drivability, causing them to fail prematurely and require costly repairs.

Plaintiffs Joseph Sangenito, Zhargal Dampilon, Richard Grad and Kevin Finley claim the defect causes the vehicles to jerk or shudder when driving, especially when shifting gears, making turns or driving at low speeds. 

Sangenito, Dampilon, Grad and Finley argue BMW knew about the alleged defect yet failed to disclose it to consumers and refused to fully reimburse them for repairs.

“Plaintiffs’ claims arise out of BMW’s failure to disclose and/or fraudulent concealment of the Transfer Case Defect and the issues it causes, and its representations about the world-class quality of the Class Vehicles,” the BMW class action says. 

The plaintiffs want to represent a nationwide class of consumers who bought or leased a BMW vehicle with a defective transfer case. 

BMW has been aware of defect since at least 2018, class action claims

The transfer case defect affects a wide range of BMW models from 2019 to 2025, including the X3, X4, X5, X6, X7, 3 Series, 4 Series, 5 Series, 7 Series and 8 Series, according to the BMW class action. 

BMW, meanwhile, has been aware of the defect since at least 2018, based on its own design and testing data, consumer complaints and service bulletins, the BMW class action alleges.

The plaintiffs claim the automaker issued a service bulletin in 2020 acknowledging the problem and advising dealers to replace the transfer case fluid, but that this did not resolve the defect and that they ultimately were forced to pay out of pocket for repairs that should have been covered by warranty. 

Sangenito, Dampilon, Grad and Finley claim BMW is guilty of breach of warranty, fraud, and unjust enrichment and of violating consumer protection laws.

The plaintiffs demand a jury trial and request injunctive and declaratory relief and an award of compensatory, exemplary, statutory and punitive damages for themselves and all class members. 

A group of four vehicle owners filed a separate class action lawsuit against BMW last month over claims the automaker sold vehicles with defective starters that can overheat and pose a fire safety risk.

Have you ever bought or leased a BMW equipped with a defective transfer case? Let us know in the comments.

The plaintiffs are represented by James E. Cecchi and Zachary A. Jacobs of Carella, Byrne, Cecchi, Brody & Agnello, P.C.; Jonathan D. Selbin and Kenneth S. Byrd of Lieff Cabraser Heimann & Bernstein, LLP; and Nathan Heber and You-Jin Han of Heber Han, P.C.

The BMW class action lawsuit is Sangenito, et al. v. BMW of North America, LLC, et al., Case No. 2:25-cv-17858 in the U.S. District Court for the District of New Jersey.

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