Navistar’s $135 Million MaxxForce Engine Settlement Moving Forward
Rockford, Illinois – Navistar, maker of International Trucks, is one step closer to putting the MaxxForce engine debacle behind it after a U.S. District Court Judge gave preliminary approval to a $135 million class action settlement announced last month.
On June 12, 2019, Judge Joan B. Gottschall of the United States District Court for the Northern District of Illinois issued an Order granting preliminary approval to a proposed settlement brought on behalf of plaintiff truck owners and lessees alleging that Navistar, Inc. and Navistar International, Inc. sold or leased 2011-2014 model year vehicles equipped with certain MaxxForce 11- or 13-liter diesel engines equipped with a defective EGR emissions system.
Judge Gottschall ruled that the proposed class action settlement, which had been submitted to the Court on May 28, 2019, is likely to be approved as fair, reasonable, and adequate in addressing plaintiffs’ claims, and that the Court was also likely to certify the Settlement Class for purposes of implementing the settlement.
Details Of The Settlement
The $135 million settlement provides class members with $2,500 per truck or $10,000 rebate off new truck, or option to seek up to $15,000 per truck in out of pocket damages caused by alleged defect.
The Settlement “denies all claims…wrongdoing, liability or damage of any kind, and denies that [Navistar] acted improperly or wrongfully in any way.”
According to an 8-K form filed last month with the Securities and Exchange Commission, Navistar notified shareholders the company would take a $159 million charge-out in the second quarter as part of the Settlement.
A Navistar representative explained the charge by saying, “Navistar is taking a charge of $159 million in the second quarter to address the costs associated with current period liabilities and future potential settlements of certain litigation related to Model Year 2011-2014 Class 8 trucks sold in the U.S. with the company’s 11 & 13-liter EGR only engines, including U.S. class action lawsuits.
This amount also includes additional funds for certain other engine lawsuits that are not included in the settlement agreement.”
How To File Claim Form
Lieff Cabraser represents trucking companies in litigation against Navistar International Corporation.
Class Members who wish to participate in the Settlement and receive a benefit under the Settlement must complete and submit a Claim Form.
To request the Claim Form, members of the class should visit Lief Cabraser’s website HERE and update their contact information.
However, those who do not wish to participate can challenge the Settlement at a final approval hearing scheduled for November 13.
Those who opt out can sue Navistar separately.
Further, those who have already sued Navistar are not eligible to file a claim under the terms of the Settlement.
If the Settlement is granted with final approval claims can then be filed for six months.
Members would begin receiving payouts in May 2020.
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