Hagens Berman represented owners of Chrysler, Dodge, Fiat, Jeep and Ram vehicles affected by a defect causing overconsumption of oil and spontaneous vehicle shut off during low oil pressure. In 2022 a federal judge approved a settlement valued at $108 million for owners of vehicles with 2.4L TigerShark MultiAir II engines.
FIAT CHRYSLER OIL PRESSURE SETTLEMENT
In December 2022, a Michigan federal judge approved a settlement valued at $108 million adding, “Settlement Class Members will benefit significantly from the Settlement that occurred because of the efforts of Class Counsel.” The settlement includes comprehensive relief including extended warranties, software upgrades, free testing and repairs, and repair reimbursements.
OIL PRESSURE DEFECT EXPLAINED
Hagens Berman filed a class-action lawsuit based on consumer complaints that various Fiat Chrysler automotives routinely overconsumed oil, causing costly maintenance. The oil overconsumption also reportedly led to low oil pressure, triggering a defect in the affected Chrysler, Dodge, Fiat, Jeep and Ram vehicles to spontaneously shut off while in operation. This could occur in the middle of intersections or even on the freeway. According to vehicle owner reports, there was no indicator to show actual remaining oil life to warn drivers of potentially sudden shutdown. Owners experienced the defect in nearly new models.
FIAT CHRYSLER KNEW ABOUT THE DEFECT
Documents issued by Fiat Chrysler to dealerships via technical service bulletins (TSBs) indicated that the automaker was aware of the rampant issue of oil overconsumption since at least 2015.
In the issued document, FCA acknowledged the high oil consumption rate of a quart every 750 miles. But the TSB suggests – and owner forums confirm – consumption rate can be higher. This rapid consumption caused vehicles to unexpectedly shut down more frequently.
CASE TIMELINE
On Mar. 23, 2022, the plaintiffs in the case representing all affected vehicle owners requested the court grant approval to a proposed settlement agreement reached with Fiat Chrysler. The settlement agreement valued at more than $70 million will cover costs of repairs and replacements made resulting from the oil consumption defect and will extend vehicle warranties. The settlement will also establish an $8 million fund to reimburse class member who incurred towing and rental car expenses related to the defect. Additionally, class members who require an engine block replacement to resolve the defect will receive an automatic cash payment of $340. Vehicle owners may also be eligible to receive additional repairs under the settlement. More information will be provided via the settlement website upon court approval.
