Case Summary
On August 24, 2018, plaintiff Andre Tomas filed a class action lawsuit in the U.S. District Court for the District of New Jersey against Bayerische Motoren Werke AG and BMW of North America, LLC. The complaint alleged that BMW installed unlawful defeat devices in approximately 100,000 diesel vehicles, including X5 and 328d models, to manipulate emissions tests and appear compliant with environmental standards while emitting pollutants far exceeding legal limits on the road. The lawsuit claimed violations of federal racketeering laws, state consumer protection statutes, and breach of warranty, asserting that consumers overpaid for vehicles marketed as "clean diesel" and suffered diminished resale value.
Status or Result
The case was consolidated into multidistrict litigation and eventually settled. BMW agreed to a comprehensive settlement, which received final approval, providing cash payments to affected owners and lessees, covering emissions-related repairs, and extending warranties, while BMW denied any wrongdoing.
Key Disputes
Whether BMW knowingly designed and installed software-based defeat devices to cheat emissions testing, and whether such conduct violated consumer fraud laws and warranties, causing financial harm to vehicle owners.
Social Impact
The case intensified regulatory scrutiny on diesel emissions across the auto industry beyond Volkswagen, reinforcing the legal risks of using defeat devices. It highlighted the role of class actions in enforcing environmental and consumer protection laws, and prompted BMW to accelerate its shift toward electric vehicle development to restore its reputation.
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