The suit – Anna Sadowska and Yanick Godbout v. Volkswagen Group of America – was filed in January 2011.
It contends that the continuously variable transmissions had manufacturing and design flaws that caused them to fail, leaving owners facing thousands of dollars in repair bills.
It further asserts that Audi knew about these problems and concealed them from consumers.
In the settlement, Audi denied the transmissions were defective and said it “acted properly and in compliance with applicable laws and rules.” The automaker also said it was “also mindful of the fact that future protracted litigation, with the burdens and uncertainties it creates, may not be in the best interests of their customers.” So, the automaker agreed to the settlement.