CAMDEN, N.J., June 28, 2016 /PRNewswire/ -- A Settlement has been reached in a class action lawsuit about whether Caterpillar Inc. ("Caterpillar" or "Defendant") brand engines with exhaust emission control systems, known as the CAT Regeneration System ("CRS"), failed to work reliably, causing its EPA 2007 Compliant Caterpillar On Highway C13 and C15 engines (manufactured in 2006, 2007, 2008 and 2009), including the CRS components incorporated therewith ("Subject Engines"), to lose horsepower and shut down, requiring Caterpillar authorized dealer technicians to repair the Subject Engines which they supposedly could not effectively do. The Defendant denies the allegations in the lawsuit, and the Court has not decided who is right.
The Settlement includes all persons in the United States who are original purchasers or original lessees, subsequent purchasers or subsequent lessees, (including but not limited to those having purchased via a TRAC option or some rights to residual purchase of vehicles at lease end) of a vehicle powered by a Subject Engine.
The Settlement establishes a $60 million Settlement Fund for the benefit of the Class. All Class members who submit a valid claim will be eligible to receive a pro rata share of the Net Settlement Fund according to the following guidelines:
A. Class members who experienced no CRS Related Repairs are eligible to receive (but not guaranteed) $500 for each Subject Engine.
B. Class members who experienced one to five qualified CRS Related Repairs are eligible to receive (but not guaranteed) $5,000 per Subject Engine.
C. Class members who experienced six or more qualified CRS Related Repairs are eligible to receive (but not guaranteed) $10,000.00 per Subject Engine.
Instead of seeking a payment as set forth in B. or C. above, each eligible Class member that experienced at least one CRS Related Repair has the option 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 not be limited to towing charges, rental charges, and hotel charges. In the event the Class member seeks payment pursuant to this optional prove up process, the Class member shall not be eligible to seek payment under, B. or C. above.
Payments to eligible claimants may be adjusted pro rata (up or down) depending on the number of eligible claims filed and the total amount of the Settlement Fund available to pay claims. Payments to Class members will exhaust the Net Settlement Fund. No money will be returned to Caterpillar.
In order to receive a cash payment Class members must complete and submit a valid Claim Form. Claim Forms are available at www.EngineSettlement.com or by calling 1-888-593-5379. The deadline to file a Claim is March 20, 2017.
Class members who do not want to be legally bound by the Settlement must exclude themselves by August 6, 2016. If Class members do not timely exclude themselves, they will release any claims they may have against Caterpillar relating to the lawsuit. Class members may object to the Settlement by August 21, 2016. A Detailed Notice available on the website explains how to exclude or object to the Settlement. The Court will hold a Hearing on September 20, 2016 to consider whether to approve the Settlement and a request for attorneys' fees of up to 33.33% of the Settlement Fund plus reimbursement of reasonable expenses and service awards of $20,000 each to the Class Representatives. Class members may appear at the hearing, but don't have to. For more information, call the toll free number or visit the website.
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SOURCE United States District Court District of New Jersey