Managing Automotive

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Managing Automotive

Litigation

Industry Interests, Litigation
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VW's $1.2B 3-Liter Emissions Deal Gets Hearty Approval

A California federal judge rewarded attorneys with Valentine's Day flowers and the preliminary approval of a class action settlement worth at least $1.22 billion concerning 80,000 3.0 L Volkswagen cars implicated in the automaker's emission cheat scandal.

U.S. District Judge Charles Breyer also gave his initial blessing Tuesday to a $372.5 million deal between drivers and parts manufacturer Robert Bosch GmbH for the auto parts manufacturer’s role in designing the emissions cheat software.

[Law360]

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Industry Interests, Litigation
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Litigator of the Week: An Exceptional Carve-Out in VW Litigation

Arent Fox partner Russell McRory led the team that negotiated an exceptional carve-out settlement on behalf of Volkswagen dealer, Palisades Volkswagen, within the nationwide VW dealer diesel scandal class action settlement – the largest ever of its kind.  On January 23 the court approved a modified settlement carving out Palisades’ claims from the class action settlement regarding the diesel scandal. This is a win not just for Palisades, but for all VW dealers holding non-diesel related claims against VW.

As a result of this great win, Russell was named "Litigator of the Week" by The AmLaw's Litigation Daily.

 

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Litigation
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Arent Fox Negotiates Exceptional Carve-Out Settlement on Behalf of Volkswagen Dealer

New York, NY – Arent Fox LLP is pleased to announce that the firm negotiated an exceptional carve-out on behalf of Volkswagen dealer Palisades Volkswagen in a nationwide VW dealer diesel scandal class action settlement – the largest ever of its kind.

On January 23 the court approved a modified settlement carving out Palisades’ claims from the class action settlement regarding the diesel scandal. This is a win not just for Palisades, but for all VW dealers holding non-diesel related claims against VW.
 

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Industry Interests, Litigation
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Takata agrees to plead guilty, will pay $1 billion for hiding air bag defect

Takata Corp. has agreed to plead guilty to a single criminal charge and will pay $1 billion in fines and restitution for concealing a deadly defect in its air bag inflators.

The U.S. Attorney's Office in Detroit announced the plea deal on Friday.

Takata will pay a $25 million criminal fine, $125 million to individuals who were injured by the air bags and $850 million to automakers that purchased the inflators. The U.S. district court in Detroit has appointed attorney Kenneth Feinberg to distribute restitution payments.

[Los Angeles Times]

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Industry Interests, Litigation
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Arent Fox Partner Russell McRory Mentioned in Article About Dealer Beating GM in Battle Over Franchise Agreement

Posing a threat to the practice of punishing car dealerships for sales numbers perceived as low, the Second Circuit on Thursday ruled for a plucky Yonkers franchise that sued the auto giant.

Beck Chevrolet operated just off the Major Deegan for more than half a century until GM’s system for judging dealerships — known as the Retail Sales Index — almost forced the company to close up shop.

The system divides a dealer’s actual total retail sales during a time period by the expected sales.

[Courthouse News]

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Industry Interests, Litigation
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Maine decision interpreting dealer franchise law

The Maine Supreme Judicial Court handed down a decision on Tuesday, November 29 where Ford Motor Company will end up owing a dealer in Maine (and any other dealers in Maine with similar claims) millions in damages for unilaterally terminating a dealer incentive program without providing proper notice under state law.

Read the decision here.

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Industry Interests, Litigation
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Judge ‘Strongly Inclined’ To OK $10B VW Diesel Deal

A California federal judge said he’s “strongly inclined” to grant final approval to a $10 billion deal with owners of Volkswagen diesel vehicles in multidistrict litigation over the company’s emissions cheating scandal, in spite of objections during a hearing Tuesday, adding he’ll issue his decision by Oct. 25.

[Law360]

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Industry Interests, Litigation
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Fiat Chrysler Hit With Investor Suit Over Inflated Sales

Fiat Chrysler Automobiles NV was hit Monday with a putative shareholder class action filed in Michigan federal court alleging the automaker inflated its monthly vehicle sales figures and made false statements in violation of the Securities Exchange Act.

The suit was brought by Odus Ross, an investor who purchased Fiat Chrysler shares during the proposed class period between Oct. 16, 2013, and July 18, 2016. The suit alleges the company and its executives made a string of false statements regarding its monthly sales numbers and falsely claimed “record-setting consecutive U.S. monthly vehicle sales growth.”

[Law360]

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Industry Interests, Litigation
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In stinging decision for Uber drivers, appeals court says they must go to arbitration

Uber drivers who have banded together to take the ride-hailing company to court now may have to shift strategies and settle for smaller payouts than they had sought.

The U.S. 9th Circuit Court of Appeals in San Francisco said Wednesday that drivers who signed up with Uber in 2013 and 2014 must go to arbitration, not the courts, to resolve disputes with the company.

[Los Angeles Times]

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Industry Interests, Litigation
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Tesla Can’t Make Direct Sales In Missouri, Judge Rules

Missouri’s Department of Revenue overstepped its bounds by issuing two new motor vehicle dealership franchise licenses to Tesla Motors Inc. because state law prohibits automakers from selling their products directly to consumers, a Missouri state judge ruled.

[Law360]

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Arent Fox LLP, founded in 1942, is internationally recognized in core practice areas where business and government intersect. With more than 350 lawyers, the firm provides strategic legal counsel and multidisciplinary solutions to clients that range from Fortune 500 corporations to trade associations. The firm has offices in Los Angeles, New York, San Francisco, and Washington, DC.