Karina Basso  |  March 25, 2015

Category: Consumer News

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Mercedes-Benz engine class action lawsuitOn March 23, the plaintiffs of an ongoing Mercedes-Benz engine defect class action lawsuit informed a California federal court that they have agreed to an unopposed class action settlement with the automobile manufacturer that will provide monetary relief to engine defect Class Members in form of thousands of dollars in reimbursements for car repairs related to the allegedly defective engine parts.

According to the engine defect class action settlement:

“Defendant Mercedes-Benz USA, LLC (‘MBUSA’) prospectively [will] cover 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 Limited Warranty’s term of the lesser of 4 years of 50,000 miles.”

Each Mercedes-Benz Class Member will receive varying amounts for future repairs depending on when the engine defects manifests itself from this point forward. Based on the engine defect class action settlement, Class Members should expect the company to pay 100 percent, 70 percent, or 37.5 percent of the reasonable repair cost required by the presence of the engine defect.

Additionally, Mercedes-Benz will reimburse eligible engine defect Class Members for past repair costs that they incurred while attempting to replace the allegedly defective Mercedes-Benz engine. If these car repairs were not performed at an authorized Mercedes-Benz dealer, then participating Class Members will be reimbursed up to $4,000 for these engine defect repair and replacement costs.

The engine defect Class, should it be certified, would include: “All current and former owners and lessees of Mercedes-Benz branded automobiles equipped with certain M272 or M273 engines … who purchased or leased their Subject Vehicles within the United States.” The plaintiffs claim that there are potentially 300,000 Mercedes-Benz vehicles that fall within this Settlement Class definition.

Mercedes-Benz denies  all wrongdoing in this engine defect class action lawsuit, but has agreed to settle in order to avoid the uncertainty and cost of future litigation. This Mercedes-Benz engine defect class action settlement does not have a monetary cap.

This Mercedes-Benz engine defect class action lawsuit was originally filed in 2012 by plaintiffs Majeed Seifi and Tracey Deakin, who allege that certain Mercedes-Benz vehicles were equipped with engines containing defective gears that would wear out prematurely without warning. This alleged engine defect would cause the “check engine” light to turn on and cause the car to misfire or stop driving all together. Repairs for this engine defect typically cost Mercedes-Benz consumers several thousand dollars and required them to go without a car for several days in a row.

The plaintiffs further allege the automobile company knew of the Mercedes-Benz engine defect since 2007, since during that year the company distributed service bulletins to its dealers on how MB technicians should diagnose and replace the allegedly defective engine parts. However, Mercedes-Benz allegedly did not inform consumers of the defect at that time and instead concealed the engine problems.

During the course of the engine defect class action lawsuit, Mercedes attempted to dismiss the suit from court. Though the presiding federal judge would not allow the automaker to duck liability charges, he did trim some warranty claims during the trial. Over the next couple years, the plaintiffs pressed on, and in November of last year, they asked for summary partial judgment against Mercedes-Benz. Soon after this motion by the plaintiffs, both parties entered into mediation sessions to discuss settlement terms.

The plaintiffs are represented by Roy A. Katriel of the Katriel Law Firm and Gary S. Graifman of Kantrowitz Goldhamer & Graifman PC.

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.

UPDATE: The Mercedes-Benz engine defect class action settlement was preliminarily approved on April 8, 2015.

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49 thoughts onMercedes-Benz Agrees to Settle Engine Defect Class Action Lawsuit

  1. Debbie says:

    I think I may have had a similar problem. But I never had any sensor warning. I was driving from Indiana to Pennsylvania when I started to hear a loud roar. At first I thought I might have the beginning of a muffler leak Then all of a sudden there was an explosion I too thought it was a tire blown out but it wasn’t. When I looked under the car there was a mangled piece of metal hanging out of the center by the transmission. The car would not move without a loud grinding so I waited for a tow. It is at the dealership now. I guess I’ll get the bad news today. What did u do? $13,000 !! I’m not sure the car is worth much more than that. I’m sad because I really liked the car and we kept it like new. by the looks of all the posts I’ve found, I guess this is not an isolated incident

  2. Deborah Lowe says:

    I Deborah Lowe are trying reach out to someone for help .I have a C-230 Mercedes -Benz 2007 engine light want go out we have done everything we know to do.Can not pass inspection .

  3. Liz says:

    Daniel, I completely agree with you. The same thing happened to me. I got a letter stating I will not receive nothing at all. The letter had no date when it was sent or no post office stamp on it with a date. I received my letter on February 20th at my p.o.box & the letter stated I should respond by 17th of February if I didn’t agree with not receiving nothing. Are they serious!! Lawsuit needs to be filed by us. I will never buy a Mercedes again. Unfortunately, I still have one !

  4. Matt says:

    I have the same problem as explained in the class action suit. Have a 2006 E350. Any help is appreciated.

    1. Tricia Johnston says:

      Hello Matt, i slso have a E350 and i only found out about the lawsuit a few weeks ago. Im going to the dealer this week, to have them do a diagnostic test to see if i have this problem. My engine light is on. After reading these horror stories, im concerned the MB dealer wont do anything to rectify this. Im trying to find out when this issue first came to the attention of MB…..my dealer is pleading ignorance. Im really angry over this. How did you resolve your issue? Tricia

  5. Daniel says:

    I seriously doubt anyone will get anything…

  6. Daniel says:

    I have found this whole thing to be a scam. I submitted over 3500 dollars in cost to fix this very repair on my 2006 ML350. It had only 55,000 miles on it when the transmission went bad on us – and that just doesnt happen, so when I saw this come in the mail – I thought – hey great, some is doing something about it. But unfortunately – after filing all the repair bills and tracking down where the money comes from, I was informed I would get NOTHING back. Someone lined their pockets on this one – and it wasnt the true people who had to pay the major expense bills. SHAME on you !

  7. Liz says:

    Does anyone know if checks are to be mailed out this month ?

  8. Jim says:

    Does this lawsuit only pertain to the residents in California or is this nationwide? Im living in Louisiana and would like to know if I am covered? Thanks!

  9. Ian Devereaux says:

    I purchased a Certified Pre-Owned 2008 C300 and serviced my car on time never being late. My sensor appeared to be malfunctioning, and then the car acted as if it was having transmission problems. Towed the car to the Benz dealership to be told it was an software upgrade that was needed. Senor lghts coming on and staying on,being told it could from the vibration of the car, nothing to worry about. While heading to Texas to visit family, on the interstate I thought I had a flat. I pulled over and checked my tires nothing. Tried to continue my trip, the car would not move. Triple AAA towed my to the Witchita Kansas dealership, where I was told the drive shaft had exploded, and destroyed nearly everything under the hood. I then was quoted the repair cost which came to 13,578.56

    1. Debbie says:

      Ian devereaux, I left a reply for you look below

    2. Debbie says:

      I think I may have had a similar problem. But I never had any sensor warning. I was driving from Indiana to Pennsylvania when I started to hear a loud roar. At first I thought I might have the beginning of a muffler leak Then all of a sudden there was an explosion I too thought it was a tire blown out but it wasn’t. When I looked under the car there was a mangled piece of metal hanging out of the center by the transmission. The car would not move without a loud grinding so I waited for a tow. It is at the dealership now. I guess I’ll get the bad news today. What did u do? $13,000 !! I’m not sure the car is worth much more than that. I’m sad because I really liked the car and we kept it like new. by the looks of all the posts I’ve found, I guess this is not an isolated incident

  10. CATHY says:

    Any idea when checks are to mailed out???????

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