Class Actions
Filed on behalf of all current and former owners, class action cases in emissions scandals can create major legal challenges for those they are supposed to help
The key to class actions is often a result of what’s hiding in the fine print or in documents most people will never see. While the public often thinks of class actions as a waste of time and a burden for the companies responsible for paying out, they actually can be a major help to manufacturers.
Although many believe that class actions are based upon the idea of avoiding millions of individual lawsuits, they can often disfavor consumers. Instead of being the equivalent of a win-win where both sides are pleased with the outcome, they can greatly reduce a company’s legal liability at the expense of people like you.
How does this even happen?
In short, a class action begins when a law firm files a case involving plaintiffs across the country who accuse the manufacturer of the same common problem. These are typically law firms that focus solely on filing these types of cases. Class action lawsuits may be beneficial when the matter concerns a billing discrepancy or a minor problem with an inexpensive product. However, in a case that involves a major investment such as your vehicle, filing an individual claim may be necessary.
Emissions Class Actions
Emissions class actions involve accusations concerning deceptive programming in the vehicle’s operating systems. Often, the manufacturer is accused of working with a vendor or supplier in violating emissions standards - they may be added to the emissions class action lawsuit as a co-conspirator.
The idea of a ‘conspiracy’ is the basis for RICO (Racketeer Influenced and Corrupt Organization Act) charges in an emissions class action. RICO charges were included in several recent lawsuits, such as the Ford Super Duty and the Mercedes class actions, which implicated Bosch as a willing participant in emissions cheating. RICO charges create even higher stakes for the defendants and increases fraud liability. In addition, it many times creates added pressure for the manufacturer to find a solution to their problems and incentivizes them to work towards a settlement of the emissions class action lawsuit they face.
If a class action law firm accepts settlement terms, and the court does not find anything problematic in the proceedings, millions can be thrown into a legal process they may know nothing about. Rigid requirements are drawn up that apply nearly immediately to everyone who owned these vehicles. Generally, owners will be notified by a postcard that is sent in the mail that your rights regarding your vehicle may have permanently changed, unless a specific legal process is followed. No other form of law works that way. Yet, an emissions class action can impact you up to tens of thousands of dollars with no input on what you believe you deserve.
The vast majority, if not all, class settlements are not “opt-in,” meaning a person does not choose to go along with it intentionally but, rather, they don’t “opt out” or take action to exit the settlement. A failure to follow the often-complicated process of notifying the court that the class settlement is not acceptable is immediately translated as accepting it.
To be 100% clear: even if you never heard about the case or received the class action notice in the mail, if you do not take action in roughly 90 days (cases vary) you will have effectively told the court that you agree with the settlement and believe it is fair. Emissions class action cases are no different from any other class action - if a settlement offers no compensation unless you do X, Y and Z, you will not receive anything unless you do.
And if you don’t want to do those things? Too bad. You “agreed” to those emissions class action settlement terms by not taking action to “opt out.” Each class action has its own unique requirements to remove an owner from the settlement, but, consistently, owners are forced to provide personal and vehicle details in a signed document to the court. If you have received notice of a class action lawsuit, our firm can help you through this confusing process. However, we need to speak before your time to take action runs out.
The timeline for opting out of an emissions class action settlement varies but, once missed, is binding. That is why our firm works aggressively to inform the public before a class action settlement is a reality. It’s also why we begin the client intake process early so that we can offer critical guidance and advise owners of the best course of action. Our firm’s focus is providing transparent and clear information to owners facing an emissions class action case.