Audi Will Settle Brake System Defect Lawsuit

Audi Will Settle Brake System Defect Lawsuit

  • By: Staff Writer
  • Published June 5, 2021

The plaintiffs in a class action alleging defective brakes in certain Audi Q7s have asked the court to approve a class action settlement.

According to the May 25, 2021, filing, the proposed settlement class is: All persons and entities who purchased or leased any model year 2017 or 2018 Audi Q7 vehicle that was imported and distributed by VWGoA for sale or lease in the United States or Puerto Rico.

The terms of settlement include, with conditions:

  • extension of New Vehicle Limited Warranties to cover one front brake squealing repair;
  • reimbursement for past unreimbursed out-of-pocket expenses paid for covered repairs; and
  • an application for attorney fees’, costs, and expenses of up to $1,960,000.

The putative class action was initially filed in 2018 against Audi of America, LLC and Volkswagen Group of America, Inc., d/b/a Audi of America, Inc. (collectively, “Audi”). The lawsuit alleged the brake issue results in a high-pitched noise when the brakes are used. In May 2020, the Court partially granted Audi’s motion to dismiss claims in the third amended complaint. In December 2020, the Court granted Audi’s motion for partial dismissal of the fourth amended complaint, and the plaintiffs filed a fifth complaint.  Per the settlement motion, the parties entered settlement negotiations after Audi filed its motion to dismiss the fourth amended complaint.

The motion for preliminary approval of class action settlement notes a June 25, 2021, hearing at which the plaintiffs will seek an order granting, among other things, preliminary approval of the proposed settlement agreement and release, as well as establishing deadlines for any objections to or requests for exclusion from the proposed settlement.

The case is Mercado, et al. v. Volkswagen Group of America, Inc. d/b/a Audi of America, Inc., case number 5:18-cv-02388-JWH-SP, in the United States District Court for the Central District of California.

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