Daimler Hit With Mercedes Engine Defect Action

Law360, New York (September 20, 2011, 7:08 PM ET) -- A Mercedes-Benz car owner launched a putative class action on Monday against Daimler AG in New Jersey federal court, claiming the carmaker's high-performance AMG V8 engines are defective and prone to premature wear and failure.

Cedric Chan, a California resident, says he spent about $4,600 to repair engine parts in his 2007 Mercedes-Benz E63 AMG that should have been recalled and eventually traded his vehicle in at a loss.

The suit, which alleges violations of the Magnuson-Moss Warranty Act and New Jersey state consumer protection laws,...
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