Class Action Not

THE UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
____________________________________________________________________________
ANNA SADOWSKA, YANICK GODBOUT and TONYA DENDEKKER, on behalf of )
themselves and all others similarly situated,
)
Plaintiffs,
)		 Case No.: CV11-00665
-against)
VOLKSWAGEN GROUP OF AMERICA, INC., VOLKSWAGEN AG and AUDI AG,
)
Defendants.
____________________________________________________________________________ )
SUMMARY NOTICE OF PENDENCY OF CLASS ACTION, PROPOSED SETTLEMENT AND HEARING
TO: All current and former purchasers and lessees of
2002-2006 model year Audi A4 and Audi A6 vehicles
originally equipped with factory-installed CVT
Transmissions, which were imported and distributed
by Volkswagen Group of America, Inc. for sale or lease
in the United States.
If you are in the class of people defined above (“Settlement
Class”), you are covered by a proposed Settlement of this class
action. Detailed Notices which describe the Settlement terms,
conditions, benefits, and your rights to object to or request
exclusion from the Settlement, have been mailed to persons
and entities within the Settlement Class who can reasonably be
identified.
The Litigation: This class action lawsuit claimed that
CVT transmissions of 2002-2006 model year Audi A4 and
Audi A6 vehicles did not function properly, requiring repair or
replacement. The Defendants deny these allegations and deny
any defect, wrongdoing or liability. The Court has not decided
in favor of either side and has not decided whether this lawsuit
can or should be certified as a class action for trial.
The Settlement: After pre-trial discovery and extensive
arm’s length negotiations, both sides have agreed to a Settlement
which the Plaintiffs, as Class Representatives, and their attorneys,
believe to be fair and adequate. Pursuant to the Settlement terms,
members of the Settlement Class may be eligible to receive,
subject to specified conditions, the following benefits:
(1) Reimbursement: A cash reimbursement for the cost
you previously paid for repair or replacement of the following
CVT transmission part(s) of Settlement Class Vehicles which
occurred within 10 years or 100,000 miles from the date of
the first original purchase or lease of the vehicle, whichever
occurred first, and prior to the date of this Notice:
a. The Transmission Control Module (TCM) of the CVT
transmission of a 2003, 2004, 2005 or 2006 model year Audi
A4 or Audi A6 Settlement Class Vehicle;
b. The Valve Body of the CVT transmission of a 2003 or 2004
model year Audi A4 or Audi A6 Settlement Class Vehicle; and
c. The Transmission without the Valve Body and TCM of a CVT
Transmission of a 2002, 2003 or 2004 model year Audi A4
or Audi A6 Settlement Class Vehicle, provided you can show
that you’ve complied with all of the transmission maintenance
requirements set forth in your vehicle’s Owner’s Manual at
the proper time/mileage intervals.
You may also be entitled to reimbursement for monies paid
to repair or replace a CVT transmission part covered above
after the aforesaid 10 year/100,000 mile period and prior to the
date of this Notice, if you provide proof that the need for that
repair/replacement had been diagnosed and documented by an
authorized Audi dealer or other repair facility within that period.
(2) Warranty Extension: An extension of Audi’s New
Vehicle Limited Warranty to cover repair or replacement, by
an authorized Audi dealer, of the CVT transmission part(s) and
model year Audi A4 and Audi A6 Settlement Class Vehicles
specified in (1) a.-c. above, during a period of 10 years or
100,000 miles from the date of the first original purchase or lease
of the Settlement Class Vehicle, whichever occurs first, under
specified conditions (“extended warranty”).
(3 ) Documented “Trade-In Reimbursement Costs”:
If, prior to this Notice and within the above-referenced 10
year/100,000 mile (whichever occurred first) period, you sold or
traded-in a 2002, 2003 or 2004 model year Audi A4 or Audi A6
Settlement Class Vehicle because an Audi dealer or independent
repair facility documented that the vehicle had a CVT
transmission malfunction requiring a complete replacement of
the entire CVT transmission after the expiration of the vehicle’s
New Vehicle Limited Warranty, and the amount of money you
received from the trade-in (the “trade-in price”) was less than
the “trade-in value” of the vehicle at the time of the trade-in, you
may be entitled to recover the amount of the difference under
conditions and criteria specified in the Settlement.
Cash reimbursements under sections (1) and (3) above will
only be made if the Court approves the Settlement and after the
Settlement becomes final. However, the warranty extension is
available now, but if you obtain extended warranty coverage for
repair or replacement of a covered CVT Transmission part, you
give up the right to exclude yourself from the Settlement.
More detailed information about the lawsuit, the benefits
available under this Settlement, the terms, conditions and
proof needed for obtaining the benefits, the procedure for
obtaining the benefits, your rights and options, and what
claims you will be releasing by remaining in the Settlement
Class, is contained in the applicable mailed Class Notice.
It can also be obtained by contacting the Settlement Claims
Administrator (1-800-760-5467) or visiting the Settlement
website, www.cvtsettlement.com.
Compensation for Attorneys and Plaintiff Class
Representatives: The Court has preliminarily approved the
law firms of Strategic Legal Practices APC and The Law Office
of Robert Starr to represent you and other Class Members.
Together, the law firms are called Class Counsel. You will not be
charged for these lawyers. If you want to be represented by your
own lawyer, you may hire one at your own expense.
Class Counsel will apply to the Court for an award of attorney
fees, costs and expenses not to exceed the total combined
amount of $2,375,000 for the Plaintiffs’ attorneys. Defendants
have agreed not to oppose Class Counsel’s request up to and
not exceeding that amount. The Court may award less than this
amount. Defendants will separately pay the fees and expenses
that the Court awards. These amounts will not come out of any
recovery to which you may be entitled under the Settlement.
Class Counsel will also seek service awards for the three
Plaintiff Class Representatives in the amounts of $5,000 each
for Anna Sadowska and Yanick Godbout, and $1,000 for Tonya
DenDekker, which amounts Defendants do not oppose.
Your Options: You may remain in the Settlement Class,
object to the Settlement and/or to the requests for attorney fees/
costs and/or class representative service awards, or exclude
yourself from the Settlement.
If you remain in the Settlement Class, and are eligible to
submit a reimbursement claim, your claim form must be
postmarked by November 18, 2013. Unless you exclude
yourself, you are staying in the Class, and that means that
you can’t sue, continue to sue, be part of any other lawsuit, or
assert any claims, against the Defendants and parties released
by the Settlement, relating to the CVT Transmission in your
Settlement Class Vehicle(s). All Settlement Class Members
who do not timely request exclusion will be bound by the
Settlement, the release of claims set forth in the Settlement, and
the orders of the Court. Your rights and options are explained
in detail in the applicable mailed Notice, which also contains
a request for exclusion form. They are also explained on the
Settlement website.
Requests for exclusion must be postmarked by August
12, 2013. If you exclude yourself, you will not receive any
Settlement benefits and you cannot object to the Settlement.
If you are a Settlement Class Member and do not exclude
yourself, you can object to the Settlement. Objections to the
Settlement must be postmarked by August 12, 2013.
The requirements for excluding yourself from, or objecting
to the Settlement, are set forth in the mailed Notice. If you are
a Settlement Class Member and did not receive a mailed Notice,
you can obtain a copy by following the instructions below.
The Fairness Hearing: On September 23, 2013 at 10:00
a.m., in Courtroom 14, the Court will hold a fairness hearing
at the United States District Court for the Central District of
California, 312 North Spring Street, Los Angeles, CA 900124701, to determine whether the proposed Settlement should
be approved and to consider the application of Class Counsel
for attorneys’ fees and expenses and for service awards to
the Plaintiff Class representatives. The mailed Notice and
settlement website contain additional details about the hearing,
the proposed Settlement, the class certification, and the legal
rights of Settlement Class Members. If the Court approves
the Settlement, there may be appeals. It is always uncertain
whether these appeals can be resolved, and resolving them can
take time, perhaps more than a year. Everyone who sends in a
claim form will be informed of the progress of the Settlement.
Please be patient.
Complete Notice and Other Information: If you are a
Settlement Class Member and you did not receive a mailed Notice,
you may receive one free of charge by writing immediately
to: CVT Settlement Administrator, P.O. Box 2987, Faribault,
MN 55021-2987 or by calling 1-800-760-5467 toll free, and
requesting such Notice. You can also receive a copy of the mailed
Notice and accompanying documents (the Claim Form and
Request for Exclusion Form) by visiting the Settlement website,
www.cvtsettlement.com. When requesting a Notice, you must
provide your name, address, year and model of vehicle, and
vehicle identification number (VIN).
THIS NOTICE IS ONLY A SUMMARY. DO NOT
CALL THE CLERK OF THE COURT FOR ADDITIONAL
INFORMATION. Additional information can be found in
the mailed Notice, by contacting the Settlement Administrator
(CVT Settlement Administrator, P.O. Box 2987, Faribault,
MN 55021-2987), and/or by visiting the Settlement website,
www.cvtsettlement.com.
Dated: June 19, 2013
BY ORDER OF THE COURT
Clerk
CVT CLAIMS ADMINISTRATOR
P.O. BOX 2987
FARIBAULT, MN 55021-2987
F O R O F F I C I A L U S E O N LY
01
I MP O R TA N T L EG AL M ATERIAL S
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If the pre-printed information to the left is not correct
or if there is no pre-printed information, please check
the box and complete the information below:
Name:
Address:
City:
State:
Telephone: (
Zip Code:
)
-
Vehicle ID Number (VIN): <>
C LA IM FO RM
Anna Sadowska et al. v. Volkswagen Group of America, Inc. et al.
THREE STEPS FOR SUBMITTING A CLAIM:
Total Amount of CVT Related Transmission Claim: $
(1)
Check the applicable box for the reimbursement being sought and provide a repair record or receipt, proof
of payment, and/or other paperwork (original or copies):
If you are submitting a claim seeking reimbursement for the cost you previously paid for repair or replacement of a CVT
transmission part covered under the terms of the settlement, prior to the date of the Class Notice and within 10 years or
100,000 miles (whichever occurred first) from the date of the original sale or lease of your vehicle, and you have not already
been fully reimbursed, you must check this box and submit, with this Claim Form, documentation that shows:
• A description of the transmission work performed including a breakdown of the parts repaired or replaced (e.g., the
transmission control unit (TCM), valve body or transmission without valve body and TCM, if applicable to your vehicle
under the terms of the settlement);
• Proof of payment including the amount paid for repair or replacement (breakdown of the parts and labor costs) and the
date and manner of payment;
• The date and vehicle mileage at the time of the repair/replacement;
• The name, address and telephone number of the facility that performed the repair/replacement;
• The year, make, model and Vehicle ID Number (VIN) of your vehicle;
• Proof of ownership or lease of the vehicle; and
• For applicable claims relating to replacement of the transmission without the valve body and TCM, in addition to the
above you must submit proof that you fully complied with all of the transmission maintenance requirements, within the
proper time and mileage intervals, set forth in your vehicle’s Owner’s Manual.
This information may typically be reflected in the service invoice/repair records, and records and receipts containing proof of
payment. If you do not have copies of this documentation, contact the facility that performed the service and request copies. If you
do not have or cannot locate original service invoices or repair records, and cannot obtain copies from the facility that performed the
service after you have made a good faith attempt to obtain them, you must submit both of the following in order to make a claim: (I) a
declaration signed by you, under penalty of perjury, that sets forth the good faith attempt(s) you made to obtain the documentation,
including the name and address of each facility you contacted that performed the covered repair or replacement, the date(s) you
contacted each facility, the manner of contact, the person(s) from each facility with whom you spoke or communicated, and
the reasons why you were unable to obtain the documentation from them; and (II) a signed statement, from each Audi dealer or
repair facility that performed the covered repair or replacement, that contains all of the information required above, which the
documentation would have to show, and confirming that the need for the repair or replacement of the covered part(s) did not arise
from abuse, alteration or modification, a collision or crash, vandalism and/or other impact. A form for this statement, which must be
completed and signed by an authorized representative of the dealer or repair facility, and submitted with this Claim Form, is available
on the settlement website, www.CVTSettlement.com. In addition, with respect to claims involving a covered replacement of the
transmission without the valve body and TCM, where required documents cannot be located or obtained from the repair facility, a
form declaration is also available on the settlement website.
*3882*
*CF*
*RUST*
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If you are seeking reimbursement for the cost you previously paid for replacement of a covered CVT transmission part after
the above-mentioned 10 year or 100,000 mile (whichever occurred first) period, and the need for the replacement had been
diagnosed and documented by an Audi dealer or repair facility within the 10 year or 100,000 mile period and prior to the
date of the Class Notice, and you have not already received a full reimbursement for the amount paid, you must check this
box and submit:
• In addition to the information and documentation discussed above, submit proof that the covered CVT transmission part
failed and that the need for replacement was diagnosed and documented by an Audi dealer or independent repair facility
within the 10 year and 100,000 mile period (whichever occurs first), such as a dealership estimate for such a repair.
If you are submitting a claim for trade-in reimbursement costs based upon having sold or traded-in, prior to the date of the
Class Notice and within 10 years or 100,000 miles (whichever occurred first) from the date of the original purchase or lease of
the vehicle, a covered 2002, 2003 or 2004 Settlement Class Vehicle which had a documented CVT transmission malfunction
requiring replacement of the entire CVT transmission after the expiration of the vehicle’s New Vehicle Limited Warranty, and
you sold or traded-in the vehicle instead of repairing it and are not submitting any other claim for reimbursement, you must
check this box and submit, with this Claim Form, the following documentation:
• The sales contract, bill of sale and/or other documents reflecting the trade-in and identifying the trade-in price, the date
of the trade-in, the dealer or entity to which the vehicle was traded-in, the make, model and vehicle ID number (VIN) of
your vehicle, the mileage of the vehicle at the time of the trade-in, and that the trade-in was actually completed;
• Invoices, estimates and/or other records from an Audi dealer or repair facility documenting the CVT transmission
malfunction requiring a complete replacement of the entire transmission within the period required above, and
identifying the make, model and vehicle ID number (VIN) of your vehicle, the date and vehicle mileage on which the
transmission malfunction requiring complete replacement was documented, a description of the transmission
malfunction documented, and an estimate of the cost (parts and labor) of replacing the transmission; and
• Service records, invoices and/or other documents showing that you fully complied with all of the transmission
maintenance requirements, at the proper time and mileage intervals, set forth in the vehicle’s Owner’s Manual. If
such documents cannot be located or obtained from the dealer or repair facility after a good faith effort to obtain
them, you may submit a declaration, signed under penalty of perjury, in the form available on the settlement website,
www.CVTSettlement.com, attesting to such compliance with the Owner’s Manual’s transmission maintenance
requirements and detailing the good faith efforts made to obtain the documentation.
(2)
Sign & Date:
Signature:
(3)
Date:
/
/
Mail Claim Form and Paperwork by November 18, 2013 to:
CVT Claims Administrator
P.O. Box 2987
Faribault, MN 55021-2987
For more information please view the Class Notice, call the Claims Administrator at 1-800-760-5467 or visit www.CVTSettlement.com.
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CVT CLAIMS ADMINISTRATOR
P.O. BOX 2987
FARIBAULT, MN 55021-2987
F O R O F F I C I A L U S E O N LY
08
I MP O R TA N T L EG AL M ATERIAL S
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Page 1 of 1
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If the pre-printed information to the left is not correct
or if there is no pre-printed information, please check
the box and complete the information below:
Name:
Address:
City:
State:
Zip Code:
Telephone: (
)
-
R E QUEST FO R EXC LU SIO N
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
ANNA SADOWSKA, YANICK GODBOUT, and TONYA
DENDEKKER, individually, and on behalf of a class of similarly
situated individuals,
Plaintiffs,
CV 2:11-cv-00665 (BRO) (AGRx)
v.
VOLKSWAGEN GROUP OF AMERICA, INC., VOLKSWAGEN
AG, and AUDI AG,
Defendants.
Vehicle (Make and Model Year):
Vehicle Identification Number (VIN):
I hereby wish to exclude myself from the settlement class in the above referenced action.
I certify that no repair has been made to my vehicle under the 10 year/100,000 mile Extended Warranty provided under the settlement.
Signature:
Date:
/
/
Print Name:
*3882*
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CLASS NOTICE
Anna Sadowska et al. v. Volkswagen Group of America, Inc. et al.
Case No. CV11-00665 (BRO) (AGRx)
UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA
If you are a current or former purchaser or lessee of a 2002, 2003, 2004, 2005 or 2006
model year Audi A4 or Audi A6 vehicle equipped with a factory-installed CVT transmission,
you may be entitled to a free warranty extension and/or cash reimbursement.
A federal court authorized this notice. This is not a solicitation from a lawyer.
•
This class action lawsuit claimed that some CVT transmissions of 2002 through 2006 model year Audi A4 and
Audi A6 vehicles did not function properly. The class action, pending in the United States District Court for the
Central District of California, is entitled Anna Sadowska, et al. v. Volkswagen Group of America, Inc., et al., Case No.
CV11-00665 (the “Action” or “Lawsuit”). The Court has authorized this Notice.
•
The parties have agreed to settle the Action. This Notice explains the lawsuit, the settlement, your legal rights,
available benefits, who is eligible for them, and how to get them. As a Class Member you have various options that
you may exercise before the Court decides whether to approve the settlement.
•
Your legal rights are affected whether you act or don’t act. Read this notice carefully.
•
The Court in charge of this case still has to decide whether to approve the settlement. Payments will be made only
if the Court approves the settlement and after appeals, if any, are resolved.
BASIC INFORMATION
1.
Introduction: Why you received this notice.
According to records of Audi of America, Inc., an operating unit of Volkswagen Group of America, Inc. (“Audi”), you are a
current or past purchaser or lessee of a 2002, 2003, 2004, 2005 or 2006 model year Audi A4 or Audi A6 vehicle originally
equipped with a factory-installed CVT transmission, which was imported and distributed by Volkswagen Group of America,
Inc. for sale or lease in the United States (“Settlement Class Vehicles”). A class action lawsuit was filed against Volkswagen
Group of America, Inc., Audi AG and Volkswagen AG (collectively, “Defendants”) claiming that CVT transmissions in
Settlement Class Vehicles were defective and sold in breach of applicable warranties. The Lawsuit further claims that the
Settlement Class Vehicles were marketed and sold with knowledge of alleged defects, that proper warranty coverage was not
afforded or honored, and that the Settlement Class Vehicles were improperly designed, manufactured, distributed, marketed,
advertised, warranted and sold. The Lawsuit seeks certification of a nationwide class of all United States present and former
purchasers and lessees of Settlement Class Vehicles under causes of action alleging violation of the federal Magnuson-Moss
Warranty Act, 15 U.S.C. §2301 et seq. and breach of various states’ express warranty laws. The Lawsuit also alleges, on behalf
of California residents, violation of California consumer protection statutes.
Defendants have denied these claims. Defendants maintain that the CVT transmissions of the Settlement Class Vehicles
are not defective, that they function(ed) in a proper manner, that the Settlement Class Vehicles were properly designed,
manufactured, distributed, marketed, advertised, warranted and sold, and that Defendants have complied with all applicable
warranties and laws.
On the basis of the nationwide claims under the Magnuson-Moss Warranty Act and breach of express warranty, and without
any admission of liability on the part of Defendants, the Court has preliminarily approved a nationwide settlement of the
Lawsuit pursuant to which substantial benefits will be available to all United States past and present owners and lessees of
Settlement Class Vehicles who do not timely exclude themselves from the settlement. The settlement benefits are as follows:
-1-
(1) Reimbursement: To the extent not previously reimbursed, a cash reimbursement will be available for the cost previously
paid for repair or replacement of the following CVT transmission part(s) of Settlement Class Vehicles which occurred
within the earlier of 10 years or 100,000 miles from the date of the first original purchase or lease of the vehicle,
whichever occurred first, and prior to the date of this Notice:
a. Repair or replacement of the Transmission Control Module (TCM) of the CVT transmission of a 2003, 2004, 2005
or 2006 model year Audi A4 or Audi A6 Settlement Class Vehicle;
b. Repair or replacement of the Valve Body of the CVT transmission of a 2003 or 2004 model year Audi A4 or Audi
A6 Settlement Class Vehicle; and
c. Repair or replacement of the Transmission without the Valve Body and TCM of a CVT Transmission of a 2002,
2003 or 2004 model year Audi A4 or Audi A6 Settlement Class Vehicle, provided you have complied with all of the
transmission maintenance requirements set forth in your vehicle’s Owner’s Manual.
In addition, if you previously paid for repair or replacement of a CVT transmission part covered above after the
aforesaid 10 year or 100,000 mile period and prior to the date of this Notice, you may be entitled to reimbursement
of that cost if you provide proof that the need for that repair/replacement had been diagnosed and documented by an
authorized Audi dealer or other repair facility within the 10 year or 100,000 miles (whichever occurred first) period.
To receive a cash reimbursement, you must mail in the enclosed Claim Form, together with the required proof. The
proof required to be submitted is described in the Claim Form. The mailing must be postmarked by November 18,
2013. Cash reimbursements will only be made if the Court approves the settlement.
(2) Warranty Extension: Audi’s New Vehicle Limited Warranty will be extended to cover repair or replacement, by an
authorized Audi dealer, of the following CVT transmission part(s) during a period of 10 years or 100,000 miles from the
date of the first original purchase or lease of the Settlement Class Vehicle, whichever occurs first (“extended warranty”):
a. The Transmission Control Module (TCM) of the CVT transmission of a 2003, 2004, 2005 or 2006 model year
Audi A4 or Audi A6 Settlement Class Vehicle;
b. The Valve Body of the CVT transmission of a 2003 or 2004 model year Audi A4 or Audi A6 Settlement Class
Vehicle; and
c. The Transmission without the Valve Body and TCM of a CVT transmission of a 2002, 2003 or 2004 model year Audi
A4 or Audi A6 Settlement Class Vehicle, provided you submit, to the Audi dealer, documents (such as maintenance
or repair records) showing that you have complied with all of the transmission maintenance requirements set forth
in your vehicle’s Owner’s Manual. If such documents cannot be located or obtained from the dealer or repair facility
that performed the transmission maintenance after you have made a good faith attempt to locate/obtain them, you
may instead submit to the dealer, when you bring your vehicle in for repair, a signed declaration under penalty of
perjury, in the form available on the settlement website, www.CVTSettlement.com.
Repair or replacement under this extended warranty must be performed by an authorized Audi dealer. The extended
warranty is subject to the same terms and conditions of the New Vehicle Limited Warranty. Damage resulting
from abuse, alteration or modification, a collision or crash, vandalism and/or other impact shall be excluded and not
covered by the extended warranty.
If you are a settlement class member who qualifies under this provision, you don’t have to do anything in order
to receive the extended warranty. Audi will notify authorized dealers regarding the settlement and the extended
warranty. Moreover, the extended warranty that is being provided to settlement class members is available
immediately, so that settlement class members who are experiencing a CVT transmission issue covered under the
settlement can take their vehicles to an Audi dealership immediately for repair.
(3) Documented “Trade-In Reimbursement Costs”: If you submit documented proof that prior to the date of this Notice
and within the above-referenced 10 year or 100,000 mile (whichever occurred first) period, you sold or traded-in a
2002, 2003 or 2004 model year Audi A4 or Audi A6 Settlement Class Vehicle because an authorized Audi dealer or
independent repair facility had documented that the vehicle had a CVT transmission malfunction requiring a complete
replacement of the entire CVT transmission after the expiration of the vehicle’s New Vehicle Limited Warranty, and the
amount of money you received from the trade-in (the “trade-in price”) was less than the “trade-in value” of the vehicle at
the time of the trade-in, you may be entitled to recover the amount of the difference between the trade-in price and the
trade-in value up to and not exceeding the amount of the written estimate you had received for replacement of the CVT
transmission from (i) an authorized Audi dealer, or (ii) an independent repair facility to the extent not exceeding the
rates that would be charged by an authorized Audi dealer (the “documented replacement estimate amount”). The “trade-2-
in value” will be determined by the Kelley Blue Book average retail value of the Settlement Class at the time of trade-in
(based upon the value during the quarter of the year in which the trade-in took place and the mileage of the vehicle
rounded to the nearest 5,000 mile increment) for a Settlement Class Vehicle in above-average condition. This section
applies only to Settlement Class Members who traded-in their 2002, 2003 or 2004 Audi A4 or Audi A6 Settlement
Class Vehicle instead of paying the cost of replacing the entire CVT transmission, and who are not submitting a claim
for reimbursement under section (1) above.
If you purchased or leased more than one Settlement Class Vehicle, each vehicle may be covered under the settlement to the
extent the applicable conditions and requirements are met.
2.
Why is this a class action settlement?
In a class action lawsuit, one or more persons, called Class Representatives, sue on behalf of other people who have similar
claims. All of these people are a Class or Class Members. The Class Representatives and all Class Members are called the
Plaintiffs and the companies they sued are called the Defendants. One court resolves the issues for all Class Members, except
for those who exclude themselves from the Class.
The Court has not decided in favor of Plaintiffs or Defendants. Instead, both sides agreed to a settlement with no decision
or admission of who is right or wrong. That way, all parties avoid the risks and cost of a trial, and the people affected (the
Settlement Class Members) will get compensation quickly. The Class Representatives and the attorneys think the settlement
is best for the Class.
WHO IS PART OF THE SETTLEMENT?
3.
Am I in this Class?
The Court has conditionally approved the following definition of a Settlement Class Member:
All United States purchasers and/or lessees of any 2002, 2003, 2004, 2005 and 2006 model year Audi A4 and Audi A6 vehicle
originally equipped with a factory-installed CVT Transmission, imported and distributed by Volkswagen Group of America, Inc. for
sale or lease in the United States of America.
This settlement applies only to Settlement Class Vehicles that were imported and distributed by Volkswagen Group of America, Inc.
for sale or lease in the United States. It does not apply to vehicles that were imported into, distributed or originally sold in any other
country. If you received this Notice, you are or were a purchaser or lessee of one or more of the above-referenced Settlement Class
Vehicles that are covered under this settlement.
Excluded from the Settlement Class are (a) anyone claiming personal injury, property damage and/or subrogation, (b)
all Judges who have presided over the Action and their spouses, (c) all current employees, officers, directors, agents and
representatives of Defendants, and their family members, (d) any affiliate, parent or subsidiary of Defendants and any
entity in which Defendants have a controlling interest; (e) anyone acting as a used car dealer; (f ) anyone who purchased
a Settlement Class Vehicle for the purpose of resale; (g) anyone who purchased a Settlement Class Vehicle with salvaged
title and/or any insurance company who acquired a Settlement Class Vehicle as a result of a total loss; (h) any insurer of a
Settlement Class Vehicle; and (i) any Settlement Class Member that files a timely and proper Request for Exclusion from
the Settlement Class.
4
I’m still not sure if I am included.
If you are still not sure whether you are included, you can get more information. You can call 1-800-760-5467 or visit
www.CVTSettlement.com for more information.
SETTLEMENT BENEFITS — WHAT YOU GET
5.
What does the settlement provide?
Audi has agreed to provide the settlement benefits described in paragraph 1 above. Additional details are provided in the
next three sections.
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6.
How does the extended warranty work?
Beginning on June 19, 2013, Audi’s New Vehicle Limited Warranty will be extended to cover the repair or replacement, by
an authorized Audi dealer, of the following CVT transmission part(s) during a period of 10 years or 100,000 miles from
the date of the first original purchase or lease of the Settlement Class Vehicle, whichever occurs first (“extended warranty”):
a.
The Transmission Control Module (TCM) of the CVT transmission of a 2003, 2004, 2005 or 2006 model year
Audi A4 or Audi A6 Settlement Class Vehicle;
b. The Valve Body of the CVT transmission of a 2003 or 2004 model year Audi A4 or Audi A6 Settlement Class
Vehicle; and
c.
The Transmission without the Valve Body and TCM of a CVT transmission of a 2002, 2003 or 2004 model year Audi
A4 or Audi A6 Settlement Class Vehicle, provided you submit, to the Audi dealer, documents (such as maintenance
or repair records) showing that you have complied with all of the transmission maintenance requirements set forth
in your vehicle’s Owner’s Manual. If such documents cannot be located or obtained from the dealer or repair facility
that performed the transmission maintenance after you have made a good faith attempt to obtain them, you may
instead submit, to the dealer, a signed declaration under penalty of perjury. A form declaration, which sets forth the
information needed, is available on the settlement website at www.CVTSettlement.com.
To obtain a repair or replacement under this extended warranty, bring your vehicle to an authorized Audi dealer. Like
the original Audi New Vehicle Limited Warranty, the extended warranty afforded by this settlement requires that the
covered repair or replacement be performed by an authorized Audi dealer. Documents of the type required under the cash
reimbursement provisions of the settlement will not have to be produced for extended warranty coverage, with the exception
of a repair or replacement under subsection (c) above, or any other documentation that would be required under the original
New Vehicle Limited Warranty. The extended warranty is subject to the same terms and conditions of the New Vehicle
Limited Warranty. Damage resulting from abuse, alteration or modification, a collision or crash, vandalism and/or other
impact shall be excluded and not covered by the extended warranty.
If you obtain extended warranty coverage for repair or replacement of a covered CVT Transmission part, you give up the
right to exclude yourself from this settlement.
7.
Who can send in a claim for cash payments?
Any United States resident who purchased or leased a 2002, 2003, 2004, 2005 or 2006 model year Audi A4 or Audi A6
Settlement Class Vehicle, and qualifies for a cash reimbursement as described in paragraph 1(1) or 1(3) above, can send in
a claim, provided that he/she satisfies the criteria and requirements for the claim and follows the steps in paragraph 8 for
submitting the claim on a timely basis. Reimbursements will only be paid after the Court approves the settlement and all
appeals, if any, have been resolved.
8.
How do I send in a claim for a cash reimbursement?
To submit a claim for a cash reimbursement, do the following:
(1) Complete, sign, and date a Claim Form (there is one enclosed with these materials and you can also get one at
www.CVTSettlement.com). Keep a copy of the completed Claim Form; and
(2) Mail the Claim Form and your supporting documentation, such as repair record(s), receipts and proof of
payment, no later than November 18, 2013 to the address on the Claim Form. The information that must be
reflected in your records can be found on the Claim Form. Keep a copy of your repair records.
If you fail to mail in the Claim Form and supporting documents by the required deadline, you will not get paid. Sending in
a Claim Form late or without documentation will be the same as doing nothing.
9.
What type of supporting documentation must I submit with my Claim Form in order to receive a cash
reimbursement?
You must submit original or legible copies of receipts, invoices and/or other records (“documents”) which contain the
information required to prove that you are a Class Member and that your claim satisfies the requirements for a reimbursement.
However, in some circumstances where the required documents cannot be obtained after you have made a good faith attempt
to obtain them, other documentation may be permitted. The Claim Form, which is enclosed with this Notice, describes in
detail the documentation and information that must be submitted in support of your claim. The Claim Form is also available
on the settlement website at www.CVTSettlement.com.
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10.
If I submit a claim, when do I get my reimbursement or learn whether I will receive a payment, and what are
my rights?
The Claim Administrator will determine whether your claim is approved and what amount, if any, will be reimbursed to
you. If the Claim Administrator determines your claim is to be paid in full, your reimbursement will be mailed to you after
the settlement becomes final. The Court will hold a fairness hearing on September 23, 2013, to decide whether to approve
the settlement as fair, reasonable and adequate. If the Court approves the settlement, there may be appeals which may delay
the conclusion of the case. It is always uncertain whether these appeals can be resolved, and resolving them can take time,
perhaps more than a year. Information about the progress of the case will be available at: www.CVTSettlement.com.
If the Claim Administrator determines your claim should not be paid or should be paid only in part, you will be mailed
a letter telling you the amount you are to receive, if any; the reason(s) why your claim was denied in whole or in part, and
your rights to either accept the award or proceed further. The letter will be mailed within 75 days after receipt of your claim
or 60 days after the settlement becomes final, whichever is later. The letter will be accompanied by a Claim Decision and
Option Selection Form which explains your rights and must be completed and mailed back to the Claim Administrator if
you choose certain options described below.
If your claim is denied in whole or in part, you will have the following options to choose from:
(1) You may accept the reimbursement award by either doing nothing or, for faster processing, checking the appropriate
box on the form stating that you are accepting the award and mailing the form back to the Claim Administrator. If you
accept the offer, you may not later contest the amount of the reimbursement award.
(2) If the Claim Administrator denied your claim in whole or in part because you did not submit sufficient proof, and you
have additional documents that contain the information missing from your original claim, you will have the opportunity
to “cure” your claim by checking the appropriate box in the form and mailing the appropriate documents with the form
to the Claim Administrator within 30 days of receiving the letter. This affords you the advantage of having another
opportunity to submit needed documents that were not submitted with your original claim. If the paperwork contains
the needed information (and you are otherwise eligible) you may receive a greater or full reimbursement. If not, you will
still have the option of requesting a second review of your claim. You will receive the Claim Administrator’s response
within 75 days after their receipt of your completed form and accompanying documentation, or within 60 days after the
settlement becomes final, whichever is later.
(3) If you do not agree with the Claim Administrator’s decision, you can request to have a second review of your claim by
the Claim Administrator, who will decide whether to adjust your reimbursement amount.
a. The second review will be made by a senior level employee of the Claim Administrator who is a different employee
from the one who made the initial determination.
b. To request a second review, you must check the appropriate box on the Claim Decision and Option Selection Form
received from the Claim Administrator, and mail the form back to the Claim Administrator within (a) 30 days of
receiving the initial letter, or (b) 30 days of your receipt of the Claim Administrator’s response to your “cure” attempt
discussed in paragraph (2) above. You may rely solely on the documents and proof already submitted, and if you
choose, you may submit a written statement setting forth the reasons why you believe the decision on your claim
should be different.
c. The second reviewer will independently review the Claim Administrator’s decision and determine, based upon the
claim and materials you submitted, whether the initial determination should be adjusted. The second reviewer will
have the authority to increase the reimbursement amount originally offered, if your claim meets the requirements
justifying that amount.
d. The second review determination will be mailed to you within 45 days of the date in which the request for second
review with supporting documentation was received by the Claim Administrator, or within 60 days after the
settlement becomes final, whichever is later. The determination will state the reasons why the initial determination
was either adjusted or not changed. If a reimbursement is awarded, the Claim Administrator will mail the
reimbursement check to the Class Member within 60 days of the date that notice was given to the parties of
the second review decision, or within 75 days after the settlement becomes final, whichever is later. The Claim
Administrator’s decision shall be final and non-appealable.
e. Class Counsel will have the right to reasonably monitor the claims administration process and ensure that the Claim
Administrator is acting in accordance with the Settlement Agreement. Class Counsel will be available to confer with
class members, and with Defendants’ counsel, regarding any claim a class member believes was incorrectly denied.
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The Defendants will bear all costs of the Claim Administration including any second review of your claim.
To check on the status of your claim, you can call the Claim Administrator at 1-800-760-5467.
11.
What am I giving up to stay in the Class?
Unless you exclude yourself, you are staying in the Class. By staying in the Class, you can avail yourself of any and all benefits
under the settlement to which you are entitled, and you will be releasing the Defendants from any liability, cause of action,
claim, right to damages or other relief, and any other legal rights to which you may otherwise be entitled under the law(s)
of your state or any other applicable law, relating to the CVT Transmission(s) of your Settlement Class Vehicle(s). You will
not be able to commence or be a part of any lawsuit or arbitration, or pursue any claim, against Defendants and any “released
parties” relating to the CVT Transmissions of Settlement Class Vehicles. Staying in the Class also means that all of the
Court’s orders will apply to you and legally bind you. However, the settlement will not release any claims for personal injury
or damage to property.
The scope of the “released claims” and “released parties” are set forth in Sections I.O and I.P. of the settlement agreement,
which is available on the settlement website, www.CVTSettlement.com, should you wish to review it. You may also contact
Class Counsel, whose contact information is set forth below, with any questions you may have.
EXCLUDING YOURSELF FROM THE SETTLEMENT
12.
How do I exclude myself from this settlement?
To exclude yourself from the settlement, you must fully complete, sign and return the enclosed Request for Exclusion Form
by U.S. mail (or an express mail carrier) postmarked no later than August 12, 2013 to:
CVT Claims Administrator
P.O. Box 2987
Faribault, MN 55021-2987
If you timely submit your fully completed and signed Request for Exclusion Form by U.S. mail or express mail, you will not
be able to receive any benefits of the settlement including the extended warranty, and you cannot object to the settlement.
You will not be legally bound by anything that happens in this lawsuit.
13.
If I don’t exclude myself, can I sue later?
No. If you do not timely exclude yourself from the settlement, you cannot sue for any matters, legal claims or damages (other
than for personal injury or damage to property) relating to the CVT Transmission(s) of your Settlement Class Vehicle(s).
14.
If I exclude myself can I get the benefits of this Settlement?
No. If you exclude yourself from the Class you will not be able to take advantage of any benefits from this settlement. If you
exclude yourself, you should not submit a Claim Form to ask for money from a class action settlement. You cannot do both.
THE LAWYERS REPRESENTING YOU
15.
Do I have a lawyer in this case?
The Court has appointed the law firms of Strategic Legal Practices APC and The Law Office of Robert Starr to represent
you and all other Settlement Class Members. Together these law firms are called “Class Counsel.”
16.
Should I get my own lawyer?
You do not need to hire your own lawyer because Class Counsel is working on your behalf. But, if you want your own lawyer,
you may hire one at your own cost.
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17.
How will the lawyers be paid and will the Plaintiff Settlement Class representatives receive incentive
payments?
Class Counsel will apply to the Court, on behalf of all counsel for plaintiffs, for an award of attorney fees, costs and expenses
(“fees and expenses”) from the Court in an amount not exceeding a combined total sum of $2,375,000 (“combined amount”),
based upon the time (by hourly rates) and related factors that will be provided in Class Counsel’s application for fees and
expenses. Defendants have agreed not to oppose Class Counsel’s application for fees and expenses not exceeding that
combined amount, and Class Counsel has agreed not to accept any fees and expenses in excess of that combined amount.
You won’t have to pay these fees and expenses. Any fees and expenses awarded to Class Counsel will not affect your
settlement amount.
Class Counsel will also apply to the Court for service awards to the named Plaintiffs, who have conditionally been approved
as Settlement Class Representatives, in the amount of $5,000 each to Anna Sadowska and Yanick Godbout, and $1,000 to
Tonya Dendekker, for their initiative and effort in pursuing this litigation for the benefit of the Class. Any award for Class
Counsel fees and expenses and any service awards will be paid by Defendants and will not reduce any benefits available to
you under the settlement.
Class Counsel’s motion for fees and expenses and Settlement Class Representative service awards will be filed by July 19,
2013, and will be made available for review at www.CVTSettlement.com.
SUPPORTING OR OBJECTING TO THE SETTLEMENT
18.
How do I tell the Court that I like or dislike the settlement?
If you are a member of the Class and do not request to be excluded, you can tell the Court you like the settlement and
it should be approved, or that you object to the settlement or Class Counsel’s requests for fees and expenses and class
representative service payments, if you do not like a part of it. The Court will consider all comments from class members.
You are not required to submit anything to the Court unless you are objecting or wish to be excluded from the settlement.
To object, you must, no later than August 12, 2013, send a letter to the Court with copies to the Class Counsel and defense
counsel listed below, saying that you are objecting to the settlement in Anna Sadowska, et al. v. Volkswagen Group of America,
Inc., et al. Case No. CV11-00665 (BRO) (AGRx), and your objection must include your full name, current City and State of
residence, telephone number, the model year and VIN of your vehicle and proof that you own(ed) or lease(d) it, a statement
of all your factual and legal grounds for objecting, any documents and/or briefs supporting your objection, a statement of
whether you intend to appear at the fairness hearing, and your signature. If you intend to appear at the fairness hearing
through counsel, your comment must also state the identity of all attorneys representing you who will appear at the fairness
hearing. Be sure to send your objection to these three different places set forth below such that it is received no later than
August 12, 2013:
No. 1 Court
No. 2 Class Counsel
Clerk of the Court,
Strategic Legal Practices, APC
United States District Court for the c/o Payam Shahian
Central District of California
1875 Century Park East,
312 North Spring Street
Suite 700
Los Angeles, CA 90012-4701
Los Angeles, CA 90067
888-757-5366
No. 3 Defense Counsel
HERZFELD & RUBIN, P.C.
c/o Jeffrey L. Chase
125 Broad Street
New York, NY 10004
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The Law Office of Robert Starr
c/o Robert Starr
23277 Ventura Boulevard
Woodland Hills, CA 91364-1002
818-224-7691
If you do not submit a written comment on or objection to the proposed settlement or the application of Class Counsel
for attorney fees and expenses and/or class representative service awards, in accordance with the deadline and procedure set
forth above, you will waive your right to be heard at the fairness hearing and to appeal from any order or judgment of the
Court concerning the matter.
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19.
What is the difference between objecting and excluding?
Objecting is simply telling the Court that you do not like something about the settlement. You can object only if you stay
in the Class. Excluding yourself is telling the Court that you do not want to be part of the Class and the settlement. If you
exclude yourself, you have no basis to object because the case no longer affects you.
FAIRNESS HEARING
20.
When and where will the Court decide to approve the settlement?
The Court will hold a Fairness Hearing at 10 a.m. on September 23, 2013, in Courtroom 14, United States District Court
for the Central District of California, 312 North Spring Street, Los Angeles, CA 90012-4701. At this hearing the Court
will consider whether the settlement is fair, reasonable and adequate. If there are objections, the Court will consider them.
The Court may listen to people who have asked to speak at the hearing. The Court may also decide how much to pay Class
Counsel or whether to approve service awards. After the hearing, the Court will decide whether to approve the settlement.
We do not know how long it will take for the Court to make its decision.
21.
Do I have to come to the hearing?
No. Class Counsel will answer questions the Court may have. But, you are welcome to come at your own expense provided
you have not excluded yourself from the settlement. If you send an objection, you do not have to come to Court to talk about
it. As long as you sent your written objection such that it is received on time, the Court will consider it. You may also pay
your own lawyer to attend, but it is not necessary.
22.
May I speak at the hearing?
If you do not exclude yourself, you may ask the Court’s permission to speak at the hearing concerning the proposed
settlement or the application of Class Counsel for attorney fees and expenses and class representative service payments. To
do so, you must send in a letter notice saying that it is your intention to appear at the fairness hearing in Anna Sadowska, et
al. v. Volkswagen Group of America, Inc., et al. Case No. CV11-00665. The letter notice must state the position you intend to
present at the hearing, state the identities of all attorneys who will represent you (if any), and must include your full name,
current City and State of residence, telephone number, model and model year and VIN of your vehicle(s), and your signature.
You must send your letter notice to the Clerk of the Court, Class Counsel, and defense counsel at the three addresses listed
under question 18 above, such that it is received no later than August 12, 2013. You may combine this notice and your
comment (described under question 18) in a single letter. You cannot speak at the hearing if you excluded yourself.
IF YOU DO NOTHING
23.
What happens if I do nothing at all?
If you do nothing, you will be bound by the settlement if the Court approves it, and release the claims described under
question 11.
ADDITIONAL INFORMATION
24.
Where can I find additional information?
Visit the website at www.CVTSettlement.com, where you can find extra claim forms and more information on this
litigation and settlement. Updates regarding the case will be available at www.CVTSettlement.com. You may also call the
Claims Administrator at 1-800-760-5467.
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