MINI Cooper Class Action Settlement Gets Tentative OK

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A federal judge has preliminarily approved a class action settlement between BMW of North America LLC and first-generation MINI Cooper owners who say the automaker installed “shoddy” transmissions in their vehicles. The deal will provide Class Members reimbursement for repairs, a warranty extension and up to $2,000 if they sold their MINI Cooper at a loss.

A Final Fairness Hearing is set for April 28, 2014. Detailed notices on how to file a claim for the MINI Cooper class action settlement will go out no later than December, according court documents.

The MINI Cooper settlement resolves five class action lawsuits that accuse BMW of concealing a design defect that causes the Continuously Variable Automatic Transmissions (“CVTs”) in the vehicles to prematurely break down and suffer mechanical failure.  Plaintiffs allege the transmission defect can cause significant delays in acceleration, loss of forward propulsion and total transmission failure while driving. Even more concerning, they said, is the tendency of the transmissions to fail without warning, which can contribute to traffic accidents that may lead motorists to experience serious injury or death.

The class action settlement will cover all current and former U.S. owners and lessees of a MINI R50 (produced between June 11, 2001 and November 28, 2006) and/or a MINI R52 (produced between March 6, 2004 and July 31, 2008), that were originally equipped with a CVT.

Class Members who paid for a CVT repair or replacement at an authorized BMW or MINI dealership will be reimbursed for the out-of-pockets expenses they incurred, up to 8 years/150,000 miles. Reimbursement will be based on a time and mileage schedule that will provide between 12.5% and 100% of the costs they paid, which is estimated to be approximately $6,000 to $9,000.

Class Members who paid for a repair or replacement at a third-party repair facility instead of a MINI or BMW dealership will be subject to a maximum reimbursement of $4,100.

BMW will also reimburse vehicle owners who sold their MINI Cooper at a loss rather than pay to repair their defective transmission. Class Members who sold their vehicles for $4,000 or less can receive $1,000 if they sold a 2002-2003 model year vehicle, $1,500 for a 2004-2005 model year vehicle, or $2,000 for a 2006-2008 model year vehicle.

Details on how to file a claim for the MINI Cooper Transmission Defect Class Action Settlement are not yet available. Keep checking Top Class Actions or sign up for our free weekly e-newsletter below for updates on this case and other class action lawsuits and settlements.

The case is Aarons v. BMW of North America LLC, Case No. 11-cv-07667, in the U.S. District Court for the Central District of California.

UPDATE: Notices and claim filing instructions for the MINI Cooper settlement are being delayed by disputes between the two parties. Both sides asked the Court to intervene to expedite administration of the class action settlement benefits.

UPDATE 2: Claim filing instructions are now available! See how to file a claim for the MINI Cooper class action settlement here.

UPDATE 3: A misplaced objection to the MINI Cooper class action settlement has delayed the distribution of funds. Because the objection is similar to other objections already overruled by the judge, it is likely to be overruled as well. We will update readers when more information is available.