VW Squashes Beetle Transmission Defect Suit

Law360, New York (February 25, 2013, 5:08 PM ET) -- An Arkansas federal judge on Monday tossed a putative class action against Volkswagen Group of America Inc. alleging the automaker knowingly sold New Beetles with malfunctioning transmissions, after determining the lead plaintiff’s vehicle was not covered by the company’s warranty.

Plaintiff Shirley White had argued that the Beetles’ automatic Tiptronic transmissions were defective, causing difficult or unpredictable “hard shifting” that results in wear and, eventually, significant replacement costs. But Judge P.K. Holmes granted Volkswagen’s motion to dismiss the suit, finding White had bought her car well...
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