How class-action lawsuits work

Do not ever rejoice when a company is subject to a class-action lawsuit. Let me illustrate with an example first:

Recently, Audi has admitted that their engines had an an oil sludge problem. Letters were sent to owners of the affected models and manufacture years.

Audi set aside 37.5 million dollars for the class-action lawsuit.

1.5 million of that was set aside to be paid out to those affected. 35.7 million was the attorneys' fees.

The lawsuit started right after the 8-year manufacturer's engine warranty ended.

Very high qualifications were set to be able to submit a claim. For example, even if the work was done at a dealer, physical proof was required. After 8 years, no one I know keeps old bills.

A per-person limit of $9,000 was set. Out of the 1.5 million payment fund, a total of 166 PEOPLE could theoretically get the maximum payment.

If all of the money (total Audi settlement) went to the people, then a total of 4,133 people could theoretically be paid the maximum payment.



Also, after the settlement with the company, it will no longer be possible for people to sue the company individually for a bigger sum of money (than $9k).


I was affected by this issue. I applied. Every time, I was replied back that I did not submit information. It went down to them wanting to see a copy of my mechanic's certificate. It is obvious that no one will be paid.


WATCH OUT, THOSE WHO SPITEFULLY SAY THAT BP NEEDS TO BE SUED, OR THIS COMPANY OR THAT ONE NEEDS TO BE SUED WITH A CLASS-ACTION LAWSUIT. Attorneys will be very happy if large masses enable those attorneys to utilize their services. You, as an individual, WILL GET NOTHING.

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Page last modified 25-Apr-12 22:11:31 EDT
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