28 C
New York

Navistar agrees to pay truck owners $135 million in defective engine suit


Navistar International Corp. has agreed to pay out $135 million to settle a lawsuit that claimed that the company knew that they were selling truck owners vehicles with defective MaxxForce engines.

A law firm representing the plantiffs announced the class action settlement via press release on Wednesday, May 29.

The settlement agreement affects the owners of approximately 65,000 trucks sold between 2010 and 2013. The lawsuit is related to “certain MaxxForce 11- or 13-liter diesel engines equipped with an allegedly defective EGR emissions system.”

If the settlement is approved by the U.S. District Court for the Northern District of Illinois, Navistar will pay out $135 million to truck owners.

Class action members will have the choice of:

*A ‘no questions asked’ cash payment of up to $2500 per truck

*A $10,000 rebate off the best negotiated price of purchase of a new truck

*As much as $15,000 to recover proven out off pocket damages related to the engine defect

Jonathan Selbin, co-lead counsel for the plaintiffs, said, “We are also pleased Navistar stepped up to take care of its customers.”

Class members will include persons who owned or leased a 2011-2014 model year vehicles equipped with a MaxxForce 11- or 13-liter engine certified to meet EPA 2010 emissions standards without selective catalytic reduction technology, provided that vehicle was purchased or leased in the U.S., the District of Columbia, Puerto Rico, and all other United States territories and/or possessions.

Once settlement is approved, class members will have six months to to make their elections and file a claim.

This isn’t Navistar’s first multi-million dollar payout over alleged MaxxForce engine defects. Earlier this year, Navistar was ordered to pay out more than $1 million to Ohio-based trucking company Dutch Maid Logistics related to damaged incurred by MaxxForce engine defects. And in 2017, a Tennessee jury sided with trucking company Milan Supply Chain Solutions, awarding them nearly $31 million. Milan Supply Chains Solutions claimed that Navistar was dishonest with them when it sold them 243 International Prostar trucks with defective MaxxForce 13 engines. The jury found that Navistar had committed fraud and was in violation of consumer protection laws.


Get the hottest daily trucking news

This Week in Trucking