Audi direct-shift gearbox transmission settlement involves 2010-2012 Audi S4 and Audi S5 vehicles.

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Audi Transmission Problems Lead to Class Action Settlement
Audi direct-shift gearbox transmission settlement involves 2010-2012 Audi S4 and Audi S5 vehicles.

— An Audi transmission settlement has been granted final approval after an owner claimed the direct-shift gearbox transmissions have problems.

Those problems are allegedly in 2010-2012 Audi S4 and Audi S5 vehicles that shake, jerk and suffer from shifting problems.

According to the class action lawsuit, the Audi transmission problems cause juddering and shuddering when accelerating, decelerating, and when shifting into second through fourth gears.

In addition, the Audi transmission problems cause the vehicle to enter limp mode which makes the vehicle impossible to accelerate. This allegedly requires the complete replacement of the transmission.

The plaintiff also alleges Audi knew or should have known about the transmission problems before the vehicles were even sold.

The judge allowed the plaintiffs to amend the transmission lawsuit four times before Audi agreed to settle the case.

Audi Transmission Problems: Settlement Granted Final Approval

Owners of 2010-2012 Audi S4 and Audi S5 vehicles will need to read the following from the court to determine if the transmission settlement will offer any benefits.

Audi agreed to reimburse customers for one repair of a diagnosed problem of shuddering, juddering, rough shifting or improperly entering “limp mode” of the transmission.

The transmission settlement says a repair means the replacement of either the transmission or mechatronics unit.

However, to qualify for reimbursement, the repair must have been performed prior to the Audi transmission class action settlement notice date and within nine years or 90,000 miles from when the vehicle first went into service.

Additionally, reimbursement is on a sliding scale based on the mileage and age of the 2010-2012 Audi vehicles. In addition to the customer paying for part of the repairs, the customer must show documents proving the vehicle was maintained based on the maintenance schedule.

Then there is what the lawsuit claims is an "added benefit" of the Audi transmission settlement which includes a 9-year/90,000-mile "extended warranty." That's nine years or 90,000 miles from the date the vehicle first went into service.

Based on the age and mileage of the 2010-2012 Audi vehicles, the "extended warranty" expired before the settlement was even granted final approval, something noted by the judge below.

Although the judge granted final approval to the settlement, he said the "vast majority of class members will not receive any payment under this settlement."

As for the extended warranty, the judge said no owners apparently qualify for the "settlement benefit."

"Although the settlement also results in an 'Extended Warranty' for 9 years or 90,000 miles, Plaintiff’s counsel acknowledged at the final fairness hearing that he is not aware of anyone who still qualifies given the age and mileage limits. Plaintiff notes that reimbursement for past Covered Repairs is the 'primary benefit' of the Settlement." — Judge Haywood S. Gilliam, Jr.

The Audi owner who sued will receive $5,000, and the attorneys who represent the plaintiff will receive $992,533.80 in fees and $25,908.65 for expenses.

The Audi transmission lawsuit was filed in the U.S. District Court for the Northern District of California: John Chess, v. Volkswagen Group of America, Inc.

The plaintiff is represented by Simmons Hanly Conroy LLC, and Milberg Coleman Bryson Phillips Grossman.


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