BMW of North America, LLC

MARCUS V. BMW OF NORTH AMERICA, LLC, ET AL., CIVIL ACTION NO. 08-CV-05859-KSH-PS (D. N.J.)

In recent years, BMW has equipped its vehicles with run-flat tires manufactured by Bridgestone. Plaintiff, who leased a BMW with Bridgestone run-flat tires, alleges that BMW and Bridgestone failed to disclose that the run-flat tires are defective, prone to pop from normal driving, unrepairable and extremely expensive to replace.

As a result of the placement of these defective Bridgestone run-flat tires on BMWs, Plaintiff commenced a class action in the United States District Court, District of New Jersey against defendants BMW of North America, LLC; Bridgestone Americas Tire Operations, LLC, and Bridgestone Corporation for violations of the Magnuson-Moss Warranty Act, the New Jersey Consumer Fraud Act, breach of the implied warranty of merchantability, breach of express warranty, and breach of contract.

On December 18, 2009, the Honorable Katharine S. Hayden held oral argument on the motions to dismiss filed by the defendants, as well as BMW of North America's motion to strike plaintiff's class action allegations. In a decision read from the bench, Judge Hayden denied the motions to dismiss of all defendants in their entirety, and also denied BMW of North America's motion to strike plaintiff's class action allegations.

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Plaintiff  filed a motion for class certification on May 28, 2010.

On November 19, 2010, Judge Katharine S. Hayden determined that plaintiff can proceed on behalf of a New Jersey class of BMW drivers whose cars came equipped with Bridgestone run-flat tires.  In coming to her decision, Judge Hayden noted that the documents in the case show that the defendants were aware of problems with the tires--one defendant's internal documents voiced concern that there is "no future" for run-flat tires--and therefore the defendants' documents "demonstrate that the class members can establish, using common proofs, what the defendants knew about run-flat tires and what they withheld from customers."

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