When Automakers Get Taken To Court
Cars are supposed to make life easier, not leave you with a legal headache. But sometimes, automakers drop the ball so hard that drivers take them to court—by the thousands! Here are 20 wild class action lawsuits that show how messy things can get when a car’s biggest feature turns out to be...a legal battle.
1. Volkswagen Emissions Scandal (Dieselgate)
Volkswagen’s $14.7 billion settlement in 2016 became one of the costliest automotive class actions in history. The company secretly installed defeat devices in diesel cars to cheat emissions tests, affecting nearly 475,000 vehicles in the U.S. Lastly, owners received buybacks, repairs, and compensation.
Mariordo Mario Roberto Duran Ortiz on Wikimedia
2. Takata Airbag Defect Lawsuit
Exploding airbags are the last thing you expect in a crash, yet Takata’s defect affected over 42 million vehicles. In 2017, the company settled this class action for around $700 million after fatalities linked to shrapnel-propelling airbags surfaced. The aftermath led to recalls, automaker lawsuits, and Takata’s eventual bankruptcy.
Janipewter at English Wikipedia on Wikimedia
3. General Motors Ignition Switch Defect Class Action
GM paid $121.1 million in 2020 after it was revealed that faulty ignition switches could shut off engines while disabling airbags. Linked to 124 deaths, the defect led to numerous vehicle recalls. The lawsuit exposed GM’s decade-long cover-up, sparking outrage and new vehicle safety regulations.
4. Toyota Unintended Acceleration Lawsuit
A panic-inducing flaw in Toyota vehicles led to sudden acceleration incidents, crashes, and fatalities. The $1.1 billion settlement in 2014 followed extensive investigations into faulty pedal designs and electronic throttle systems. Millions of cars were recalled, forcing Toyota to overhaul its safety measures.
ER24 EMS (Pty) Ltd. on Wikimedia
5. BMW Emissions Defeat Device Class Action
Caught in the emissions scandal wave, BMW agreed to a $6 million settlement in 2024 for using illegal software to manipulate test results. Owners of affected diesel BMW and Mini models received compensation, while regulators cracked down harder on emissions fraud across Europe and the U.S.
6. Mercedes-Benz BlueTEC Diesel Emissions Class Action
More than 250,000 vehicles were part of Mercedes-Benz’s $700 million class action settlement in 2020. The luxury automaker was accused of equipping its BlueTEC diesel engines with emissions-cheating software. This case underscored that even high-end brands weren’t above tampering with pollution control systems.
skinnylawyer from Los Angeles, California, USA on Wikimedia
7. Fiat Chrysler Diesel Emissions Lawsuit
Fiat Chrysler paid $800 million in 2019 after being caught using illegal emissions control software in Ram and Jeep diesel models. Over 100,000 vehicles were impacted. Owners received cash payouts, while Fiat Chrysler had to recall and fix the affected models to meet legal standards.
8. MyFord Touch Settlement Amount
In 2019, Ford agreed to a $17 million settlement addressing issues with its MyFord Touch and MyLincoln Touch infotainment systems. Affected owners and lessees of vehicles equipped with these systems, purchased or leased between 2010 and August 9, 2013, were eligible for compensation.
9. Nissan Automatic Emergency Braking System Defect
Nissan faced a $277 million class action in 2022 for its faulty automatic emergency braking system, which activated randomly, increasing crash risks. Over 1.2 million vehicles were involved. Plaintiffs alleged Nissan knew about the issue but delayed action, endangering drivers nationwide.
Nissan Automatic Emergency Braking by DPCcars
10. General Motors Engine Defect
General Motors has agreed to a $35 million settlement over defective Bosch CP4 fuel injection pumps in certain 2011–2016 Chevrolet Silverado and GMC Sierra diesel trucks, which could cause engine failures. Eligible owners in select states who paid for repairs may receive between $6,356 and $12,712, while former owners without repair costs could get $400 to $800.
RL GNZLZ from Chile on Wikimedia
11. Chevrolet Bolt EV Battery Fire Lawsuit
In 2024, General Motors and LG Electronics agreed to a $150 million settlement addressing claims that 2017–2022 Chevrolet Bolt EVs contained defective LG Chem battery cells. The issue stemmed from two manufacturing defects—a torn anode tab and a folded separator—found in the high-voltage battery packs.
12. Tesla Autopilot Class Action
Tesla’s Autopilot promised futuristic driving but instead delivered lawsuits. In 2018, a $5.4 million settlement addressed claims that Tesla exaggerated self-driving capabilities. Owners argued the system was unreliable, pushing regulators to scrutinize how self-driving technology is marketed to consumers.
13. Hyundai And Kia Engine Defect Lawsuit
Hyundai and Kia paid a staggering $3.1 billion in 2021 after widespread reports of spontaneous engine fires in their vehicles. Faulty manufacturing led to oil leaks and overheating. The case resulted in a major recall of over 2 million affected cars.
14. Ford Pinto Deadly Fires
The Ford Pinto became infamous for its deadly fuel tank fires. In Grimshaw v. Ford Motor Co., the jury awarded $2.516 million in compensatory damages and $125 million in punitive damages. However, the trial judge later reduced the punitive damages to $3.5 million, a decision that was upheld on appeal.
dave_7 from Lethbridge, Canada on Wikimedia
15. Nissan CVT Transmission Defect Lawsuit
Nissan settled multiple class-action lawsuits over defective CVTs in 2014–2019 models, agreeing to $277.7 million in 2022 and additional settlements in 2023. Plus, the owners reported transmission failures, shuddering, and acceleration issues.
16. Hyundai And Kia’s Overstated Fuel Efficiency
In 2012, Hyundai and Kia admitted to overstating fuel efficiency for vehicles, leading to a $41.2 million class-action settlement. The U.S. Environmental Protection Agency discovered discrepancies between the companies' advertised fuel efficiency and their own test results, with some models showing inflated mileage.
17. Audi Emissions Defeat Device Class Action
Audi was hit with a $927 million fine in 2018 after being caught using emissions-cheating software similar to Volkswagen. Over 200,000 diesel vehicles were affected. The case reinforced that emissions fraud wasn’t limited to budget brands—luxury automakers were just as culpable.
18. Ford PowerShift Transmission Defect
Hesitation and sudden stalls plagued Ford Focus and Fiesta owners, leading to a $35 million settlement. The lawsuit revealed that Ford had knowingly sold defective PowerShift transmissions. Angry customers received reimbursement, while Ford reworked future transmission designs.
19. Toyota Prius Stalling Defect Class Action
In 2021, Toyota agreed to a $20 million settlement to resolve a class-action lawsuit concerning stalling defects in Prius models. The lawsuit alleged that defective inverter components could cause vehicles to stall at high speeds, posing safety risks.
Rutger van der Maar on Wikimedia
20. Hyundai’s Anti-Theft Flaws
Hyundai agreed to a $145 million settlement (part of a $200 million total) over claims of inadequate anti-theft features in certain models, including those made between 2011 and 2022, which made them more susceptible to theft. Affected owners may be eligible for compensation, depending on individual circumstances.
Hyundai holding free event to update anti-theft software in Denver by FOX31 Denver
