A class-action lawsuit, lodged against Volkswagen Group of America over alleged defects with the continuously variable transmissions (CVT) it put in 64,000 2002-06 Audi A4 and A6 models, has been settled. The German automaker has denied all allegations, telling the New York Times that it settled the case because it was "'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." (That said, the plantiff lawyers will receive about $2.4 million for fees and expense.)

What matters most to affected Audi owners is that the settlement bumps many parts of the original powertrain coverage (e.g., transmission control modules) from 4 years/50,000 miles to 10 years/100,000 miles for the original owner, and it will reimburse owners who paid for specific repairs if they occurred within the extended warranty coverage. The agreement also includes trade-in reimbursements for lost value if the vehicle was sold or traded with no repair. Excluded from the settlement are claims for personal injury, property damage or subrogation.

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