Volkswagen Timing Chain Settlement

A lawsuit called In Re Volkswagen Timing Chain Product Liability Litigation, Civil Action No. 16-2765 (JLL)(JAD) (“the Action”), was filed against Volkswagen Group of America, Inc. (“VWGoA”), Volkswagen AG (“VWAG”), and Audi AG (“Audi AG”) (collectively, “Defendants”). Plaintiffs filed the Action as a putative class action against Defendants, claiming timing chain or timing chain tensioner defects in Settlement Class Vehicles.

Defendants have and continue to dispute all of Plaintiffs’ claims. Defendants maintain that the Settlement Class Vehicles are not defective, that no applicable warranties were breached nor applicable statutes violated, that the Settlement Class Vehicles were properly designed, manufactured, distributed, marketed, advertised, warranted, and sold, and that Defendants have not engaged in any wrongdoing.

To resolve this dispute, the parties have agreed to compromise and settle all issues and claims that were or could have been brought by or on behalf of Plaintiffs and members of the Settlement Class.

In a class action lawsuit, one or more persons, called Class Representatives, sue on behalf of other people who have similar claims. All of these people are Class Members. The Class Representatives and all Settlement Class Members are called the Plaintiffs and the companies they sued are called the Defendants. One court resolves the issues for all Settlement Class Members, except for those who exclude themselves from the Class. U.S. District Judge Jose L. Linares is in charge of this class Action.

The Court has not decided in favor of Plaintiffs or Defendants. Instead, both sides agreed to a Settlement with no decision or admission of who is right or wrong. That way, all parties avoid the risks and cost of a trial, and the people affected (the Settlement Class Members) will get compensation quickly. The Class Representatives and the attorneys believe that the Settlement is fair, reasonable, and serves the best interests of the Settlement Class.

To determine if your vehicle is included in the Volkswagen Timing Chain Settlement, you may check your VIN using the VIN Lookup Tool to verify if your vehicle is included as a Settlement Class Vehicle in the case database.

You are a Settlement Class Member and part of the Settlement if you purchased or leased a Settlement Class Vehicle in the United States or Puerto Rico and your vehicle’s VIN is included in the VIN database, unless excluded as set forth below.

Excluded from the Settlement Class are:

1. Anyone claiming personal injury, property damage, and/or subrogation;
2. All Judges who have presided over the Actions, and their spouses;
3. All current employees, officers, directors, agents, and representatives of Defendants, and their family members;
4. Any affiliate, parent, or subsidiary of Defendants and any entity in which Defendants have a controlling interest;
5. Anyone acting as a used car dealer;
6. Anyone who purchased a Settlement Class Vehicle for the purpose of commercial resale;
7. Anyone who purchased a Settlement Class Vehicle with a salvaged title and/or any insurance company who acquired a Settlement Class Vehicle as a result of a total loss;
8. Any insurer of a Settlement Class Vehicle;
9. Issuers of extended vehicle warranties and service contracts;
10. Any Settlement Class Member who, prior to the date of the Settlement Agreement, settled with and released Defendants or any Released Parties from any Released Claims; and
11. Any Settlement Class Member that filed a timely and proper Request for Exclusion from the Settlement Class.

I. Warranty Extension:

VWGoA’s New Vehicle Limited Warranty will be extended to cover repair or replacement, by an authorized Volkswagen or Audi dealer, of failed timing chains and/or timing chain tensioners of Settlement Class Vehicles during a period of ten (10) years or one hundred thousand (100,000) miles from the “In-Service Date,” whichever comes first. The “In-Service Date” is the date on which the Class Vehicle was delivered to either the original purchaser or the original lessee; or if the vehicle was first placed in-service as a “demonstrator” or “company” car, on the date such vehicle was first placed in service.

The Warranty Extension will be subject to sliding scale percentages (below) based upon the time from In-Service Date and mileage of the particular vehicle. The scope of the Warranty Extension will also cover a percentage of the cost of repair or replacement (parts and labor), by an authorized VW or Audi dealer, of a damaged or failed engine of a Settlement Class Vehicle that is determined to have been directly caused by the failure of the vehicle's Timing Chain and/or Timing Chain Tensioner, within the same above 10-year or 100,000 mile (whichever occurs first) Extended Warranty period from the In-Service Date of the vehicle, and subject to the following time/mileage percentage limits:

All other terms, conditions and limitations of the Warranty Extension, as set forth in the Settlement Agreement, Section II.A., remain the same and apply in all respects to the added relief described above. This includes, but is not limited to, the requirements that: (a) the repair must be performed by an authorized VW dealer (for VW Settlement Class Vehicles) or Audi dealer (for Audi Settlement Class Vehicles), (b) the Settlement Class member submits, to the dealer, Proof of Adherence to the Vehicle's Maintenance Schedule, and (c) if the Timing Chain and/or Timing Chain Tensioner failure occurs more than thirty (30) days after the Notice Date and within 10 years or 100,000 miles (whichever occurs first) from the In-Service Date of the Settlement Class Vehicle, the Settlement Class Member must take the vehicle to an authorized VW or Audi dealer for repair/replacement, pursuant to the terms of the Extended Warranty, regardless of whether the repair or replacement is to the Timing Chain, Timing Chain Tensioner and/or a damaged or failed engine determined to be directly caused by a failed Timing Chain and/or Timing Chain Tensioner.

The warranty, as extended, is fully transferable to subsequent owners. Repair or replacement under this extended warranty must be performed by an authorized Volkswagen or Audi dealer, unless repaired prior to the Effective Date.

If your vehicle was previously repaired, see II B.

II. Reimbursement of Out-of-Pocket Expenses for Repair or Replacement of Timing Chain and/or Timing Chain Tensioner:

Settlement Class Members may be entitled to reimbursement for out-of-pocket expenses incurred for repair or replacement of failed timing chains and/or timing chain tensioners of Settlement Class Vehicles during the period of ten (10) years or one hundred thousand (100,000) miles from the date the vehicle was first placed into service, whichever occurs first, as follows:

1. Timing Chain Tensioner Repair/Replacement:
   

   If the timing chain tensioner was repaired or replaced at an authorized Audi (for Audi vehicles) or Volkswagen (for Volkswagen vehicles) dealer, the Settlement Class Member will receive a one-hundred-percent (100%) refund of the paid dealer invoice amount for the covered part(s) and labor.

   If the timing chain tensioner was repaired or replaced at an independent service center and not an authorized Audi or Volkswagen dealer, the Settlement Class Member will receive a refund of the paid invoice for the covered parts and labor, but no more than $1,100.00.

2. Timing Chain Repair/Replacement:
   

   If the timing chain was repaired or replaced at an authorized Audi (for Audi vehicles) or Volkswagen (for Volkswagen vehicles) dealer, the Settlement Class Member will receive a one-hundred-percent (100%) refund of the paid dealer invoice amount for the covered part(s) and labor.

   If the timing chain was repaired or replaced at an independent service center and not an authorized Audi or Volkswagen dealer, the Settlement Class Member will receive a refund of the paid invoice amount for the covered parts and labor, but no more than $1,500.00.

   When the timing chain is replaced, the warranty coverage includes oil change, oil filter, and cleaning of oil pan, which includes reimbursement to Settlement Class Members for payments previously made for these items in connection with a timing chain repair or replacement.

   The above relief is subject to certain limitations and proof requirements which are set forth in FAQ 6 and FAQ 7.

3. Simultaneous Timing Chain and Timing Chain Tensioner Repair/Replacement:
   

   If the timing chain and timing chain tensioner were both simultaneously repaired or replaced at an authorized Audi or Volkswagen dealer, the Settlement Class Member will receive a one-hundred-percent (100%) refund of the dealer invoice amount for the covered part(s) and labor.

   If the timing chain and timing chain tensioner were both simultaneously repaired or replaced at an independent service center and not an authorized Audi or Volkswagen dealer, the Settlement Class Member will receive a refund of the invoice for the covered parts and labor, but no more than $2,000.00.

   The above relief is subject to certain limitations and proof requirements which are set forth in FAQ 6 and FAQ 7.

III. Reimbursement of Out-of-Pocket Expenses to Repair or Replace Damaged or Failed Engine Due to Failure of the Timing Chain Tensioner and/or Timing Chain:

In addition to the reimbursements and warranty extension set forth above, Settlement Class Members may be entitled to reimbursement of out-of-pocket expenses incurred to repair or replace a failed or damaged engine due to the failure of the timing chain tensioner and/or timing chain within ten (10) years or one hundred thousand (100,000) miles from the date the Settlement Class Vehicle was placed into service, whichever occurs first, as follows:

• If the engine was repaired or replaced at an authorized Audi (for Audi vehicles) or Volkswagen (for Volkswagen vehicles) dealer, a refund of the paid dealer invoice amount subject to the time/mileage parameters in the table below.
• If the engine was repaired or replaced at an independent service center and not an authorized Audi or Volkswagen dealer, the maximum reimbursement amount is $6,500.00, subject to the time/mileage parameters in the table below.

Table for Reimbursement for Out-Of-Pocket Expenses for Damaged or Failed Engine Due to Timing Chain Tensioner/Timing Chain Failure

Any reimbursement will be reduced by goodwill or other concession paid by an authorized Volkswagen or Audi dealer or any other entity (including insurers and providers of extended warranties).

VWGoA will not be responsible for, and will not warrant, repair or replacement work performed at an independent service center and not an Audi or Volkswagen dealer. If the Volkswagen or Audi replacement covered part(s), purchased by the Settlement Class Member or the independent service center from an authorized Volkswagen or Audi dealer, fails within one (1) year or 12,000 miles (whichever occurs first) of installation, VWGoA will provide a free replacement of the covered part(s) only.

Any replacement engine will be subject to the replacement part warranty terms and conditions accompanying that replacement engine. This Settlement does not modify the terms, conditions, restrictions, or limitations of that warranty.

In order to be reimbursed for out-of-pocket expenses, you must provide documentation sufficient for the Claim Administrator to process the Claim. This includes originals or legible copies of repair invoices, receipts, business cards, letterheads, credit card receipts, copies of checks, and/or other records, showing the following::

• The Settlement Class Member's name, and the make, model year, and vehicle identification number (VIN) of the Settlement Class Vehicle (this will frequently be on the repair invoice);
• Name and address of authorized Volkswagen/Audi dealer or servicing center that performed the repair (this will frequently be on the repair invoice);
• Date of repair, description of repair work performed, mileage at repair, and part(s) replaced (this will frequently be on the repair invoice);
• Proof of ownership or lease of the vehicle;
• That the repair or replacement was due to the failure of the timing chain tensioner and/or timing chain within the time/mileage parameters of the Settlement;
• The cost (parts and labor) of repair/replacement and proof of payment of same or such other proof sufficient to establish the repair and payment (this can be a copy of the check, credit card statement, or if paid in cash, a stamped “paid” invoice); and/or
• Documents evidencing the Settlement Class Member's good-faith adherence to the relevant aspects of the vehicle maintenance schedule during the time he/she owned the Settlement Class Vehicle, in particular, scheduled oil changes, up to the date/mileage of repair/replacement, within a variance of 10% of the scheduled time/maintenance requirements (e.g. if oil changes are required for your vehicle every 5,000 miles, you must have had the oil change no later than 500 miles past the recommended oil change requirement). However, in the event maintenance records cannot be obtained despite a good-faith effort to obtain them, the Settlement Class Member may submit a sworn declaration detailing what efforts were made to obtain the records, why the records are not available, and attesting to adherence to the vehicle maintenance schedule and, in particular, scheduled oil changes, up to the date/mileage of replacement/repair, within the variance set forth above.
  • If needed, you can download and print a template Vehicle Maintenance Declaration document here. If you choose to submit a declaration, in lieu of documents attesting to adherence to the vehicle maintenance schedule, the Claim Administrator recommends utilizing the template Vehicle Maintenance Declaration, or a declaration of substantially similar format and content.

Failure to submit a Claim with supporting documents within the specified time frame will result in denial of your Claim.

Unless you exclude yourself, you are staying in the Settlement Class, and that means that you cannot sue, continue to sue, or be part of any other lawsuit about the same matters and legal issues in this case (except for claims of personal injury or property damage). It also means that all of the Court’s orders will apply to you and legally bind you.

To get a reimbursement for out-of-pocket expenses for repairs and/or replacement, as provided for in the Settlement, you must complete and timely submit a Claim Form. Failure to submit a Claim by the deadline below may result in denial of your Claim. You can mail in a completed, signed, and dated Claim Form along with your supporting documentation to the address on the form, postmarked no later than January 25, 2019. Alternatively, you may submit a Claim Form and documentation electronically by clicking here, no later than January 25, 2019.

If the Claim Administrator determines your Claim is valid, your reimbursement will be mailed to you after the Settlement becomes final. The Court will hold a Fairness Hearing on November 19, 2018 to decide whether to approve the Settlement as fair, reasonable and adequate. Information about the progress of the case will be available on this website.

If the Claim Administrator determines your Claim should not be paid, you will be mailed a letter detailing the reason for denial. If the reason for rejecting your Claim is due to a deficiency in your Claim Form and/or supporting proof, the letter will notify you of the deficiency in your Claim and what needs to be submitted to correct the deficiency.

To check on the status of your Claim, you can call 1-855-206-9873.

You may choose to request exclusion from the Settlement and the Class. This is called “excluding yourself” or “opting out.” If you exclude yourself from the Settlement, you will not be entitled to receive the Settlement benefits. However, you will not be bound by any judgment or settlement of this class action lawsuit and will keep your right to sue independently, if you choose.

Important Note: The deadline to exclude yourself from the Settlement has been extended to December 3, 2018, for Settlement Class Members who have Settlement Class Vehicles registered in the state of New Hampshire.

To exclude yourself from the Settlement, you must mail the Claim Administrator a Request for Exclusion that contains the following information:

1. The name of the lawsuit: “In Re Volkswagen Timing Chain Product Liability Litigation, Case No. 16-2765 (JLL)(JAD)”;
2. Your full name, current address, and telephone number;
3. Your vehicle year and model;
4. The Vehicle Identification Number (VIN) of your vehicle(s);
5. A specific and unambiguous statement of your intent to exclude yourself from the Settlement Class (for example, “Please exclude me from the Settlement Class for the Volkswagen Timing Chain Product Liability Litigation.”); and
6. Your signature and the date you signed it.

For Settlement Class Members who have Settlement Class Vehicles registered in the state of New Hampshire, your Request for Exclusion must be sent by first-class United States Mail postmarked by December 3, 2018 to the following addresses.

For Settlement Class Vehicles registered outside the state of New Hampshire, you must send your Request for Exclusion by first-class United States Mail, postmarked no later than October 12, 2018 to each of the following:

If you do not follow these procedures and adhere to the deadlines to exclude yourself from the Settlement, you will remain a Settlement Class Member and lose any opportunity to exclude yourself from the Settlement. This means that your rights will be determined in this lawsuit by the Settlement Agreement if it receives final approval from the Court. A telephone call to Class Counsel or the Claim Administrator does not constitute “opting out” of the Settlement.

Important Note: The deadline to object to the Settlement has been extended to December 3, 2018, for Settlement Class Members who have Settlement Class Vehicles registered in the state of New Hampshire.

If you do not exclude yourself, you can tell the Court you do not like the Settlement or some part of it by filing an objection to the Settlement. Your objection could be to any aspect of the Settlement. If you object to the Settlement, you cannot also exclude yourself and you remain a Settlement Class Member.

In order to object, you or your attorney must file with the Court a written objection and any supporting papers and also mail your objection and any supporting papers to: (1) Class Counsel, (2) Defendants’ counsel, (3) Clerk of the Court, and (4) the Claim Administrator, postmarked no later than October 12, 2018. Please note, the deadline to object to the Settlement has been extended to December 3, 2018 for Settlement Class Members who have Settlement Class Vehicles registered in the state of New Hampshire. Your objections must contain the following:

1. The name of the lawsuit: “In Re Volkswagen Timing Chain Product Liability Litigation, Case No. 16-2765 (JLL)(JAD)”;
2. Your full name, current address, and telephone number;
3. Your vehicle year and model;
4. The Vehicle Identification Number (VIN) of your vehicle(s);
5. Proof that you have owned or leased a Settlement Class Vehicle (i.e., a true copy of a vehicle title, registration, or license receipt);
6. A written statement of all grounds for the objection accompanied by any legal support for such objection;
7. Copies of any papers, briefs, or other documents upon which the objection is based and are pertinent to the objection;
8. Whether you intend to appear at the Fairness Hearing, also known as a Final Approval Hearing, and whether you will be represented by separate counsel. If you intend to appear at the Fairness Hearing through counsel, your comment must also state the identity of all attorneys representing you who will appear at the Fairness Hearing;
9. Your signature and the date of your signature; and
10. A list of all other objections submitted by you, or your attorney, to any class action settlements submitted in any court in the United States in the previous five years, including the full case name with jurisdiction in which it was filed, and the docket number. If you, or your attorney, have not objected to any other class action settlements in the United States in the previous five years, you must affirmatively state this in your objection.

For Settlement Class Members who have Settlement Class Vehicles registered in the state of New Hampshire, your objection must be sent by first-class United States Mail postmarked by December 3, 2018 to the following addresses.

For Settlement Class Vehicles registered outside the state of New Hampshire, your objection must be sent by first-class United States Mail postmarked by October 12, 2018, to the following addresses:

Objecting is simply telling the Court that you do not like something about the Settlement. You can object only if you stay in the Settlement Class. Excluding yourself is telling the Court that you do not want to be part of the Settlement Class and the Settlement. If you exclude yourself, you have no basis to object because the case no longer affects you.

Important Note: The Fairness Hearing has been moved to December 12, 2018 at 11:00 a.m.

As long as you do not exclude yourself, you can (but do not have to) participate and speak for yourself in this lawsuit and Settlement. This is called making an appearance. You can also have your own lawyer speak for you, but you will have to pay for the lawyer yourself.

If you want to appear, or if you want your own lawyer instead of Class Counsel to participate or speak for you in this lawsuit, you must provide written notice in your objection to the Settlement mailed to the Court and mailed to the attorneys listed in FAQ 12. The notice must state that it is your intention to appear at the Fairness Hearing in In Re Volkswagen Timing Chain Product Liability Litigation, Civil Action No. 16-2765(JLL)(JAD). The letter notice must state the position you intend to present at the Fairness Hearing, state the identities of all attorneys who will represent you (if any), and must include your full name, current address, telephone number, model year and VIN of your vehicle(s), and your signature.

You must send your letter notice to the Clerk of the Court, Class Counsel, and Defense Counsel at the three addresses listed in FAQ 12, such that it is postmarked no later than October 12, 2018. You may combine this notice and your comment described in FAQ 12 in a single letter. You cannot speak at the Fairness Hearing if you excluded yourself from the Settlement.

The Court will hold a Fairness Hearing on December 12, 2018 at 11:00 a.m., at the United States District Court for the District of New Jersey, Martin Luther King, Jr. Federal Building and U.S. Courthouse, 50 Walnut Street, Newark, New Jersey 07101, to determine whether the Settlement should be finally approved. At this Fairness Hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. The Court will also consider Class Counsel’s application for attorneys’ fees, reimbursement of litigation expenses, and incentive awards to the Settlement Class Representatives.

You do not need to hire your own lawyer because Class Counsel is working on your behalf. But, if you want your own lawyer, you may hire one at your own cost.

The Court has appointed the law firms of Carella Byrne Cecchi Olstein Brody & Agnello, P.C.; Kessler Topaz Meltzer & Check, LLP; and Kantrowitz, Goldhamer & Graifman, P.C. to represent the Settlement Class. Together these law firms are called “Class Counsel.”

Class Counsel have prosecuted this case on a contingency basis, meaning that to date, they have not received any fees or reimbursement for any of the costs and expenses associated with this case. Class Counsel will request an award of reasonable attorney fees from the Court, in addition to reimbursement of their reasonable costs and expenses of this Lawsuit (“Fees and Expenses”).

Class Counsel will also apply to the Court for incentive awards to the Settlement Class Representatives, who have conditionally been approved as Settlement Class Representatives, in the amount of $2,500.00 each for their efforts in pursuing this litigation for the benefit of the Settlement Class.

You won’t have to pay these Fees and Expenses. Any award for Class Counsel’s Fees and Expenses and any incentive awards will be paid by Defendants and will not reduce any benefits available to you under the Settlement.

No. Class Counsel will answer questions the Court may have. But, you are welcome to come at your own expense, provided you have not excluded yourself from the Settlement. If you send an objection, you do not have to come to Court to talk about it. You may also pay your own lawyer to attend, but it is not necessary.

Important Note: The Fairness Hearing has been moved to December 12, 2018 at 11:00 a.m.

The Court has preliminarily approved the Settlement provided for in the Settlement Agreement. The Settlement will not take effect unless and until: (1) the Court approves the Settlement after the Fairness Hearing and (a) a Final Order and Judgment has been entered by the Court and the applicable period for the appeal of the Final Order and Judgment has expired without any appeals having been filed, or (b) all such appeals have been dismissed; or (2) the appropriate Court of Appeals has entered a final judgment affirming the Final Order and Judgment of the Court, which (a) is no longer subject to any further appellate challenge, or (b) has been affirmed by the United States Supreme Court.

The Court will hold a Fairness Hearing on December 12, 2018 at 11:00 a.m., United States District Court for the District of New Jersey, Martin Luther King, Jr. Federal Building and U.S. Courthouse, 50 Walnut Street, Newark, New Jersey 07101, to determine whether the Settlement should be granted final approval. At this Fairness Hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. The Court will also consider Class Counsel’s application for Fees and Expenses and incentive awards to the Settlement Class Representatives.

If the Court does not approve the Settlement, Settlement Class Members will not be entitled to receive the Settlement benefits described in FAQ 5. It will be as if no Settlement had been reached.

If you do nothing, you will still be a Settlement Class Member. However, you will not be entitled to a reimbursement of out-of-pocket expenses if you do not timely submit a Claim Form with the required documentation, within the timeframe required by the Settlement. You will be bound by the terms of the Settlement including the Release, which means you cannot bring a lawsuit against Defendants or any other Released Party for any Released Claims and claims that were or could have been asserted in this lawsuit.

If you have additional questions regarding this Settlement, or if you did not receive a Notice of Settlement in the mail and believe that you may be a member of the Settlement Class, you should contact the Claim Administrator by calling 1-855-206-9873 or emailing info@TimingChainLitigation.com for more information, or you may communicate directly with Class Counsel by contacting:

Class Counsel
James E. Cecchi
Carella Byrne Cecchi Olstein Brody & Agnello, P.C.
5 Becker Farm Road
Roseland, NJ 07068

If you wish to obtain more detailed information, you may review the Settlement Agreement, which contains the complete terms of the Settlement. The Settlement Agreement, along with documents filed in the lawsuit, are available here, and are on file with the Court and available to be inspected at any time during regular business hours at the Clerk’s Office. The Clerk of the Court is located at:

Clerk of the Court
United States District Court for the District of New Jersey
Martin Luther King, Jr. Federal Building and U.S. Courthouse
50 Walnut Street
Newark, NJ 07101

Please do not contact the Court or Defendants for more information regarding the Settlement.

If needed, you can download and print a template Vehicle Maintenance Declaration document here. If you choose to submit a declaration, in lieu of documents attesting to adherence to the vehicle maintenance schedule, the Claim Administrator recommends utilizing the template Vehicle Maintenance Declaration, or a declaration of substantially similar format and content.