VW Settles Seat Lawsuit by Paying Lawyers Millions, Leaving Owners with Slight Returns | Carscoops

      A class action lawsuit concerning the seat latches of the Atlas SUV has resulted in a settlement, though Volkswagen did not admit any wrongdoing.

      VW has agreed to resolve the lawsuit related to concerns about the second-row seat latches in Atlas models from 2018 to 2024, which are alleged to be flawed. The warranty for these latches will now extend for a decade or up to 100,000 miles if a failure is confirmed by a dealership.

      Volkswagen has come to an agreement in a U.S. class action lawsuit that has been ongoing for four years, addressing issues around potentially defective second-row seat latches in its Atlas SUVs. The case sparked discussions about whether the fault lay in the design or in how users operate it.

      Initially, the plaintiffs sought repairs or replacements for the latches and even vehicle buybacks. Ultimately, they opted for a financial settlement and an extension of the warranty instead of those more extensive remedies.

      Allegations Concerning the Latches

      The lawsuit asserted that the second-row seats in the 2018-2024 Atlas models might fail to latch properly after being folded or slid forward.

      Volkswagen promptly dismissed the notion of a defect, suggesting that many owners may not have known how to ensure the seat was securely locked.

      Often, the only way to confirm if a second row is latched is by pushing it firmly into position, listening for the latch sound, and then shaking it to verify. The Atlas features a pop-up red indicator that shows when the seat is unlatched, but it retracts when the seat is secured.

      However, the lawsuit contended that this indicator was “an inadequate means to inform the driver that the seat is not properly secured to the floor.”

      Legal Expenses and Compensation

      As part of the settlement, Volkswagen will disburse $4 million to the plaintiffs’ legal team, even as the automaker maintains there is no actual defect, according to Carcomplaints.

      Furthermore, each of the 15 named plaintiffs will receive $2,500, totaling $37,500, while all affected owners will gain from an extended warranty on the seat latch, now covering 10 years or 100,000 miles from the original in-service date of the vehicle. The company will also reimburse any owner who previously incurred costs to repair or replace a latch.

      Notably, the warranty extension is applicable only when a Volkswagen dealership verifies that a latch has indeed failed. The automaker points out that this coverage does not include any malfunctions resulting from “damage, abuse, alteration, modification, collision or crash, vandalism, and/or other impact or damage from external sources.”

      Thus, owners cannot deliberately damage the latch in the hopes of receiving a replacement and an extended warranty.

      Volkswagen has also published a brief video on YouTube that illustrates how the pop-up indicator functions and demonstrates the proper method for accessing the Atlas's third row.

      Sources: Carcomplaints, VW