Settlements in Chrysler Power Module Defect Class Action Reached

Last week, the parties in a class action lawsuit in New York accusing Fiat Chrysler Automobiles US LLC of allegedly hiding a defect in the power modules of its vehicles reportedly entered into a settlement agreement.

Last November, lead plaintiffs filed the class action lawsuit, which alleged that Chrysler breached express and implied warranties and negligently designed the module of more than 20 of its vehicle models.

In their class action lawsuit, the plaintiffs alleged that Chrysler designed and sold vehicles with a defective part that affects the module, or the “electronic nerve center,” of the vehicles and then concealed that information in violation of consumer protection laws and express and implied warranties.

In March, Chrysler filed a motion to dismiss the power module defect class action lawsuit, arguing that the plaintiffs failed to present any proof for their claims.

In September, U.S. District Judge Katherine B. Forrest trimmed much of the Chrysler class action lawsuit, ruling that about all but 11 of the state claims did not include sufficient detail to maintain the claim, including claims under Arizona, Florida, Kentucky, New York, South Dakota and Texas law.

Judge Forrest also ruled that the allegation that the manufacturing defect would be covered by Chrysler’s basic limited warranty was not adequately pleaded by a number of plaintiffs.

Additionally, the plaintiffs’ claims for breach of express warranty based on the maximum care coverage, breach of implied warranty of merchantability, violations of the Magnuson-Moss Warranty Act and fraudulent concealment were dropped from the class action lawsuit. This ruling left only a few claims for fraud and consumer protection, but the judge did not completely toss the class action lawsuit.

According to court documents, the plaintiffs have entered into individual settlements with Chrysler. Details were not available, but the documents indicate that the parties are in the process of finalizing the settlement agreements. The plaintiffs asked Judge Forrest to hold any deadlines pending in the class action lawsuit.

“Plaintiffs anticipate having the settlement agreements finalized and fully executed, and a dismissal filed within the next two weeks,” wrote the representative for the plaintiff in the court document.

The specific terms of the settlement agreements were not immediately available; however, the five remaining plaintiffs in the class action lawsuit have entered into settlement agreements, according to court documents. Additionally, the defendant, Chrysler, has not objected to the plaintiffs’ request to hold the deadlines in the litigation.

The plaintiffs are represented by Christopher B. Dalbey, Curt D. Marshall and Robin L. Greenwald of Weitz & Luxenberg PC and Roland Tellis, David Fernandes and Kirsten Soto of Baron & Budd PC.

The Chrysler Module Defect Class Action Lawsuit is Garcia, et al. v. Chrysler Group LLC, Case No. 1:14-cv-08926, in the U.S. District Court for the Southern District of New York.