Consumers who have purchased or leased the model year 2021 or older Mercedes 450 GLE SUV with a 48-volt battery system need to pay close attention to their rights.
A class action lawsuit alleges that the model year 2021 and older Mercedes 450 GLE SUVs equipped with 48-volt batteries suffer from problems with their electrical systems.
The class action claims that in addition to repeated failures to start even after a few hours and without any lights or electronics on, these vehicles may also stall while in motion and suffers problems with the dashboard display losing power as it reboots and restarts (“Electrical and Battery Defects”).
The class action lawsuit further alleges that Mercedes knew about these Electrical and Battery Defects but has failed to address them, forcing owners to pay for diagnostics, software updates, and even battery replacements and leaving them without their vehicles for days or weeks.
Current or former owners or lessees of these vehicles who reside in California should know that California lemon law and federal law may force Mercedes to either “buy the vehicle back” or provide substantial compensation for those experiencing these defects. Under California’s lemon law, qualifying “lemons” must be repurchased, and that can mean a large cash refund and payoff of your loan or lease. Depending on the situation, this refund could be as much as everything you paid for the vehicle and everything you owe: monthly payments, down payments, tax, finance charges, license, registration, etc.
You could even qualify for two times your money back. What Mercedes would have to buy it for has nothing to do with how much the vehicle is currently worth. There is a formula in the law that starts with you getting all your money back and then taking certain deductions and exclusions. Those refunds and exclusions are challenging to understand and can be fought against by knowledgeable consumer attorneys. Watch the mail, watch your email, and contact a consumer lawyer for advice as to your options.
Status of the Mercedes GLE 450 Class Action
This lawsuit was initially filed as a nationwide class action lawsuit in the Superior Court of the State of New Jersey in May 2021. It was later removed to the United States District Court for the District of New Jersey (Gerald Scattaglia, Jr., v. Mercedes-Benz USA, LLC, et al., Case No. 2:21-cv-12750-BRM-JRA). In the proposed Third Amended Complaint, the plaintiff seeks relief only for New Jersey residents for the model year 2021 and older 450 GLE SUVs equipped with 48-volt batteries.
On January 14, 2022, the plaintiff filed a second amended class action complaint and later a motion to file a proposed Third Amended Complaint. The motion to file the Third Amended Complaint and Motions to Dismiss the allegations in the Second Amended Complaint (which may not be ruled on if the court permits filing the Third Amended Complaint) has been referred to Magistrate Judge Jose R. Almonte and are pending.
The court has not yet certified the case to proceed as a class action lawsuit.
Your options as a Mercedes 450 GLE owner
In a class action lawsuit, if the class is certified by the court, the lawyers who bring the class action represent you. If you are a New Jersey resident and the class is certified, you will receive notice that the court approves the case to proceed as a class action and of your right to opt out of the class by a specific deadline. If they prevail at trial, you receive whatever relief the judge or jury awards. But if they lose, you may not litigate claims over the issues raised in the case.
As with most litigation, the vast majority of class action cases settle. If the case settles and the court preliminarily approves the settlement, you will receive a class notice describing your options. Those options will be: (a) do nothing, in which case you may get nothing but be bound by the settlement, (b) submit a claim form if requested and get whatever relief is made available, and the settlement also binds you, or (c) opt-out and pursue your own claims, in which case you are not bound by the settlement but cannot participate in the relief being offered to class members.
For many people, a class action settlement may provide significant benefits and requires little effort to participate. It also comes with no risk, as the claims have been resolved.
But for others, particularly where they may have had significant damages, opting out and pursuing individual claims may provide them an opportunity to receive a better recovery in a shorter period, but with no guarantee that they will get anything in a settlement.
With vehicles, what to do can be a complicated decision, as it can depend on many factors. These factors include:
- How old is your car?
- Have the defects occurred in your car?
- Have you taken it in for repairs on more than one occasion?
- Do you still own the car?
- Is the vehicle still under warranty?
- Where do you live?
Are you willing to consider the opportunity of getting a more significant recovery as compared to taking what is offered in a settlement?
We are available to help you sort through these questions and make an informed decision.
Mercedes 450 GLE Battery Class Action FAQ
What is the class action lawsuit name and case number?
Gerald Scattaglia, Jr., v. Mercedes-Benz USA, LLC, et al., Case No. 2:21-cv-12750-BRM-JRA
When and where was the Mercedes class action filed?
The case was initially filed as a nationwide class action lawsuit in the Superior Court of the State of New Jersey in May 2021. On June 18, 2021, the lawsuit was removed to the United States District Court for the District of New Jersey, where it is pending.
In the proposed Third Amended Complaint, the plaintiff seeks relief only for New Jersey residents in model year 2021 and older 450 GLE SUVs equipped with 48-volt batteries.
What does the plaintiff allege in the Mercedes 450 GLE class action lawsuit?
The complaint in the class action lawsuit alleges that the model year 2021 and older 450 GLE SUV vehicles manufactured or distributed by Mercedes equipped with a 48-volt battery system suffer from problems with their electrical systems.
The plaintiff claims that in addition to repeated failures to start even after a few hours and without any lights or electronics on, these vehicles also suffer problems with stalling and stopping while the vehicle is in motion and the dashboard display loses power as it reboots and restarts.
The class action further alleges that Mercedes knew about the Electrical and Battery Defects but has failed to address them, forcing owners to pay for diagnostics, software updates, and even battery replacements and leaving them without their vehicles for days or weeks.
What are the affected vehicle models identified in the class action lawsuit?
The model year 2021 or older 450 GLE SUV vehicles manufactured or distributed by Mercedes with a 48-volt battery system.
How many Mercedes 450 GLE vehicles are affected by these alleged electrical defects?
According to publicly available data, the total number of 2019-21 model 450 GLE SUV vehicles sold in the United States is approximately 162,000 vehicles.
What does the class action lawsuit claim about defects in the vehicles?
The most common issues related to 48-volt battery systems in the model year 2021 and older 450 GLE SUV vehicles manufactured or distributed by Mercedes are being unable to start even after a few hours and without any lights or electronics on, cars stalling or shutting off while in motion and the dashboard display losing power as it reboots and restarts.
How do the defects violate the affected vehicle warranty?
The plaintiff alleges that in its Limited Warranty, Mercedes expressly warranted that it would repair or replace defects in material or workmanship free of charge if they became apparent during the warranty period. The plaintiff also alleges that Mercedes’s Limited Warranty is a written warranty within the Magnuson-Moss Warranty Act, 15 USC §2301(6).
The plaintiff also alleges Mercedes breached its express warranty to repair defects in materials and workmanship within the affected vehicles as Mercedes has not repaired and has been unable to fix the Electric and Battery Defects. Because Mercedes breached its implied and express warranties, purchasers of these vehicles received goods with a substantially impaired value that Mercedes has failed or refused to repair.
The plaintiff also alleges that because these vehicles suffer from Electric and Battery Defects that cause these vehicles not to start and shut off or stall while in motion, Mercedes also breached both implied and express warranties. These vehicles did not comply with the implied warranty of merchantability because, at the time of sale, they were defective and not in merchantable condition, would not pass without objection in the trade, and were not fit for the ordinary purpose.
The plaintiff also alleges that Mercedes did not disclose the Electric and Battery Defects, or any of their causes, to consumers before they purchased or leased these vehicles and that such safety-related defects would be material to their decision to purchase or lease these vehicles.
Have the consumers been offered anything to resolve this issue?
Mercedes has issued at least four technical service bulletins for issues related to the 48-volt batteries of its vehicles, with two of those bulletins explicitly related to vehicles that would not start and a TSB in January 2020 regarding the model year 2021 GLE 450 SUVs and the 48-volt batteries.
The plaintiff alleges in the class action lawsuit that this is evidence that the malfunctions referenced in these bulletins have occurred repeatedly, yet authorized Mercedes repair facilities have performed no meaningful diagnosis or repairs to correct these problems, forcing owners to pay for diagnostics, software updates, and even battery replacements and leaving them without their vehicles for days or weeks.
Has this Mercedes GLE 450 class action lawsuit been settled?
No.
Is there anything I need to do right now?
At this point, the case has not been settled, and the case has not been certified to proceed as a class action. If you want to bring your own claim, you can do so now and opt out when you receive notice. Or the class will be defined as those people who have not filed lawsuits or settled their claims, and you will be automatically opted out of the settlement. As a settlement has not been reached nor class notice mailed out, there is nothing you need to do at this time.
What Happens If I Don’t Opt Out of the Class Action Lawsuit or Settlement?
It depends on how the settlement is structured, but generally, if you do not opt-out of the settlement, you will be bound by its terms. You will receive any benefits offered in the settlement automatically or by submitting a claim form. However, you cannot bring any individual claim for damages caused by the defects, except possibly for personal injury claims.
Why Should I Opt Out of Any Certified or Settlement Class?
For many people, a class action provides significant benefits without spending money or doing much other than completing a claim form. And because the matter is settled, as long as the court approves the settlement, you will get the relief described in the class notice.
However, other people may decide that the relief offered as part of the class action settlement is inadequate, that they do not want to wait to get relief, or that they think they will get more if they do not participate in the class action settlement. This depends on a variety of factors, such as how old your car is, whether you can document the defects that occurred in your vehicle, whether you have taken it in for repairs on more than one occasion, do you still own the car, is it still under warranty and where do you live.
Depending on the answers to those questions, while there is no guarantee that you will receive any recovery, if you opt out, you may have the opportunity to receive significant relief, including a vehicle repurchase and penalties.
Do All Mercedes 450 GLE Vehicles Experience the Electric and Battery Defects?
The plaintiff alleges that the extent of the Electric and Battery Defect appears common to all of the identified vehicles (2021 and older model GLE 450 SUVs with 48-volt batteries) suffer from the Electric and Battery Defect.
Are These Vehicles Unsafe?
The plaintiff alleges in his class action complaint any vehicle that can stall or has a significant chance of stalling while in motion or cannot start may be unsafe.
What is the Song-Beverly Warranty Act?
The Song-Beverly Warranty Act, California Civil Code §1793.2(d)(1), is a California state law that requires manufacturers to repair defects after a reasonable number of repair attempts. What is “reasonable” is not part of hard and fast rules – safety defects should be fixed immediately, for example. The defects have to be important, and must “substantially impair the vehicle’s use, value, OR safety.” Civil Code §1793.22(e)(2).
Under Civil Code §1793.2(d)(1), manufacturers must promptly offer repurchase or replacement of the Class Vehicle they cannot fix in a reasonable time frame. In addition, Civil Code §1794(c) and §1793.2(d) provide that customers may have a civil penalty up to two times actual damages if manufacturers acted “willfully” (meaning knowingly but not necessarily with wrongful or malicious intent) in ignoring or failing its obligation under Song-Beverly.
Finally, under Civil Code §1794(d), manufacturers must pay the plaintiff’s attorney’s fees and costs as part of the settlement, as the Song-Beverly Act is a pro-consumer fee-shifting statute.
What Relief Could I Get If I Bring an Individual Lemon Law Lawsuit?
Current or former owners of these vehicles who reside in California should know that California lemon law and federal law may force Mercedes to either “buy the vehicle back” or provide other significant compensation. Under California’s lemon law, qualifying “lemons” must be repurchased, and that can mean a large cash refund and payoff of your loan or lease.
Depending on the circumstances, this refund could be as much as everything you paid for the vehicle and everything you owe: monthly payments, down payments, tax, finance charges, license, registration, etc. You could even qualify for two times your money back.
What Mercedes would have to buy it for has nothing to do with how much the vehicle is currently worth. There is a formula in the law that starts with you getting all your money back and then taking certain deductions and exclusions away from your payment. Those refunds and exclusions are challenging to understand and can be fought against by knowledgeable consumer attorneys.
Don’t settle for small dollar payments or more possible fixes without speaking to a qualified consumer attorney with your individual best interest in mind. Watch the mail, watch your email, and contact a consumer lawyer for advice when and if the case settles.
