The class action lawsuit claims that the fuel tanks in certain Mazda vehicles are equipped with defective Denso-manufactured fuel pumps. The lawsuit pursues claims for violations of various state consumer protection statutes, among other claims. You can read the class action complaint here. Mazda and Denso deny that they have violated any law and deny that they engaged in any wrongdoing. The parties agreed to resolve these matters before these issues were decided by the Court.
This settlement does not involve claims of personal injury, wrongful death, or actual physical property damage arising from the Covered Vehicles.
On November 16, 2021, Plaintiffs Townsend Vance and Zachary Haines filed a class action complaint in the United States District Court for the Central District of California, Townsend Vance, et al. v. Mazda Motor of America, Inc., et al., Case No. 8:21-cv-01890-CJC-KES (C.D. Cal.), asserting claims related to Mazda’s November 12, 2021 recall report (the “Recall Report”) to NHTSA voluntarily recalling nearly 121,000 Mazda vehicles manufactured between April 6, 2018 and January 13, 2020 with low-pressure Denso fuel pumps the “Recall”). The Recall Report states:
The impeller in some low-pressure fuel pumps may become deformed under certain conditions, which could cause fuel pump failure. Fuel pump failure may result in engine no start and/or vehicle stall while driving at low speed and, in rare instances, a vehicle stall could occur while driving at higher speeds, increasing the risk of a crash. Subject impellers were manufactured with inadequate material which may lead to surface cracking under certain conditions, resulting in impeller deformation. The impeller may deform to the point where it interferes with the fuel pump body causing fuel pump failure. Drivers may notice this defect by a check engine light, and/or rough engine operation.
Plaintiffs asserted claims on behalf of a statewide classes for: (1) violations of Alabama’s Deceptive Trade Practices Act § 8-19-1 et seq., California’s Consumer Legal Remedies Act § 1750 et seq., California’s Song-Beverly Consumer Warranty Act § 1790 et seq., California’s False Advertising Law § 17500 et seq., California’s Unfair Competition Law § 17200 et seq.; (2) breach of express warranty; (3) breach of implied warranty; (4) negligent recall/undertaking; (5) unjust enrichment; (6) fraudulent omission; (7) strict product liability; and, on behalf of a nationwide class, (8) a claim for violations of the Magnuson-Moss Warranty Act, 15 U.S.C. § 2301, et seq.; (9) breach of express warranty; (10) breach of implied warranty; and (11) fraudulent omission/concealment. Plaintiffs also alleged that the Recall was deficient because additional Mazda vehicles shared the same fuel pump that gave rise to the Recall.
On November 23, 2021, Plaintiffs filed a first amended class action complaint (“FAC”) alleging refined allegations regarding the Fuel Pump issue and countermeasure and adding FCA US, LLC (“FCA”) as a Defendant. The first amended complaint asserted 16 claims against Mazda, 7 claims against Denso, and 6 claims against FCA.
On December 15, 2021, Plaintiffs and Defendants filed a joint stipulation to extend Defendants’ time to respond to the first amended complaint, and, on December 23, 2021, the Parties filed a stipulation to extend the time for Plaintiffs to file a second amended class action complaint (“SAC”). On December 27, 2021, the Court granted the Parties’ stipulation to extend the time to file the SAC and entered a briefing schedule.
On January 19, 2022, Plaintiffs filed the SAC, further refining their allegations. The Class Action Complaint is brought by 2 named Plaintiffs on behalf of a nationwide class and individual state classes for California and Alabama. There are 17 causes of action.
On March 16, 2022, Mazda and Denso moved to dismiss all seventeen causes of action for violation of state consumer protection statutes and warranty laws, common law fraud, strict liability, negligent recall, and violation of the Magnuson-Moss Warranty Act. Plaintiffs served their opposition on April 20, 2022, responding to Mazda and Denso’s arguments. Mazda and Denso filed their replies on May 13, 2022. On May 19, 2022 and July 6, 2022, Plaintiffs voluntarily dismissed their claims against Mazda Motor Corporation and FCA US LLC, respectively.
On the same day, the Court issued an order for Plaintiffs to show cause regarding lack of prosecution of Mazda Motor Corporation and Denso Corporation. On March 22, 2022, Plaintiffs voluntarily dismissed Denso Corporation after negotiating a tolling agreement to avoid timely and costly service under the Hague Convention, and filed their response to the order to show cause requesting an additional thirty days to negotiate a tolling agreement with Mazda.
On April 20, 2022, Plaintiffs filed their oppositions to Defendants’ motions to dismiss and motion to strike nationwide class allegations, and, on May 13, 2022, Defendants filed their reply memoranda.
On May 19, 2022 and July 6, 2022, Plaintiffs voluntarily dismissed their claims against Mazda Motor Corporation and FCA US LLC, respectively.
Between July 7, 2022 and December 2, 2022, the Parties filed stipulations to continue the hearings on the motions to dismiss and motion to strike in an effort to narrow the issues and explore settlement.
On March 31, 2023, the Court denied Defendants’ motions to dismiss and motion to strike without prejudice and with leave to refile if the Parties were unable to reach settlement.
Between March 2023 and December 2023, Mazda produced confirmatory discovery in the aid of negotiations, and Plaintiffs’ independent automotive expert sourced and inspected over 350 Denso Fuel Pumps, and analyzed their operation, specifications, and the density of their impellers. As part of confirmatory discovery, Defendants produced and Plaintiffs analyzed over 6,609 pages of documents related to the design and operation of the subject fuel pumps, warranty data, failure modes attributed to the subject fuel pumps, the Defendants’ investigation into the defect, the Recall, and the defect countermeasure development and implementation. The Parties exchanged multiple rounds of correspondence regarding complex warranty data and failure analysis which helped to inform the scope of settlement. The Parties engaged in numerous in-person, Zoom and telephonic conferences and ultimately were successful in reaching an agreement on the substantive terms of this Settlement.
On January 18, 2024, the Parties jointly informed the Court that they reached a class settlement, were in the process of documenting the settlement, and that Plaintiffs were hopeful to file a motion for preliminary approval by February 29, 2024. ECF Doc. 122. The Court ordered that should Plaintiffs not file a motion for preliminary approval by February 29, the Parties were to file a joint status report advising the Court of their progress. ECF Doc. 123.
On February 29, 2024, the Parties filed a joint status report advising the Court that, inter alia, the Parties had retained a Settlement Administrator, were diligently working to finalize the critical exhibits to the Settlement Agreement, and mediate attorney’s fees and expenses, but required additional time. ECF Doc. 124. On March 1, 2024, the Court issued its Order directing Plaintiffs to file their motion for preliminary approval by April 19, 2024. ECF Doc. 126.
On March 8, 2024, the Parties jointly moved the Court to appoint Patrick A. Juneau as Settlement Special Master. ECF Doc. 127. The Court granted the motion and entered an order appointing Patrick A. Juneau as Settlement Special Master on March 11, 2024. ECF Doc. 128. The Parties had numerous communications with the Settlement Special Master, including an in-person mediation, regarding the negotiations, terms, timing, and other issues related to the Settlement.
On April 18, 2024, the Parties filed a stipulation to extend the deadline to file the motion for preliminary approval to May 3, 2024. ECF Doc. 129. The next day, the Court issued an order granting the stipulated extension. ECF Doc. 130.