Volkswagen's Audi Deal Nixed For 'Onerous' Claims Process

Law360, Los Angeles (January 30, 2013, 10:32 PM EST) -- A California federal judge on Wednesday rejected Volkswagen Group of America Inc.’s proposed settlement in a consumer class action alleging that transmissions in about 64,000 Audi vehicles were faulty, calling the claims procedure for class members burdensome and the carmaker's liability release overbroad.

At a hearing Wednesday, U.S. District Judge A. Howard Matz denied without prejudice a motion for preliminary approval of the settlement, questioning the lack of an opt-out clause for class members. He also took issue with a provision requiring that any objector to...
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