BMW to settle vehicle water damage lawsuit for almost $478 million

by SpeedLux
BMW 4-series car

BMW has accepted to pay up to $477.7 million to settle a class-action lawsuit concerning about 318,000 U.S. luxury car owners who might have suffered water damage hurting electrical parts in car trunks.

As per the settlement files filed in U.S. District Court in New York recently, the settlement covers owners of 2004-2010 design year BMW 5 Series cars and will permit owners to get approximately a $1,500 repayment for previous repairs.

A BMW spokesperson was not available to comment.

Owners of vehicles with less than 120,000 miles (193,121 km) and are less than 10 years old are qualified for a free maintenance if needed.

The settlement says sensitive electronic parts found in the spare tire well of the trunk in some automobiles were harmed by either blocked sunroof drain tubes or by some other ways of water getting in. As part of repairs, dealers will attach a warning label that notifies owners not to spill liquids in the trunk.

Owners contend that the company understood of the issue as early as 2004 after complaints, warranty claims and technical service publications filed with the U.S. National Highway Traffic Safety Administration (NHTSA). BMW has rejected any misbehavior.

BMW has dealt with lawsuits in New York and California over the problem for four years and the files do not indicate the number of owners might look for reimbursement.

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