Santa Clara, CA: Caterpillar Inc, has reached a preliminary $60 million settlement agreement in a defective products class action lawsuit alleging its engines equipped with exhaust emission control systems failed to work reliably, costing owners thousands.
The lawsuit claimed that Caterpillar engines with the CAT Regeneration System (CRS), failed, causing the company’s ACERT C13 and C15 on-highway diesel engines to lose horsepower and shut down. The alleged defect resulted in Caterpillar-authorized dealer technicians having to repair the engines, they allegedly could not effectively do.
The Defendant denies the allegations in the lawsuit, and the Court has not decided who is right.
The Settlement offers payments to current and former owners and lessees of vehicles with EPA 2007 Compliant Caterpillar On Highway C13 and C15 engines (manufactured in 2006, 2007, 2008, and 2009) (“Subject Engines”).
Caterpillar introduced its ACERT engines as their alternative to exhaust-gas recirculation, or EGR, to meet 2004 emissions standards.
Class members who experienced no CRS-related repairs are eligible to receive, but not guaranteed, $500 for each subject engine.
Class members who experienced one to five qualified CRS-related repairs are eligible to receive, but not guaranteed, $5,000 per subject engine.
Those class members who experienced six or more qualified CRS-related repairs are eligible to receive, but not guaranteed, $10,000 per subject engine.
Each eligible class member also has the option -- instead of seeking a payment as set forth above -- to seek to claim losses up to a maximum of $15,000, experienced as a consequence of qualified CRS-related repairs. These losses can include but will not be limited to towing charges, rental charges and hotel charges. Proofs can include receipts, invoices, bills, etc.
All class members must file a claim in order to receive a payment.
The deadline to exclude yourself from the settlement is August 6, and the deadline to object to the settlement is August 21. The final fairness hearing is scheduled fro September 20, 2016