A class action lawsuit alleges that since at least 2018, BMW knowingly sold vehicles with defective transfer cases that require costly repairs. The plaintiffs claim BMW knew about the alleged defect, but did not disclose it to consumers, nor did the company fully reimburse affected car owners for repairs.

Four BMW owners filed the lawsuit against BMW of North America LLC and Bayerische Motoren Werke AG (BMW) in New Jersey federal court. The plaintiffs, Joseph Sangenito, Zhargal Dampilon, Richard Grad, and Kevin Finley, claim the transfer case defect causes the vehicles to jerk or shudder when driving. This issue, they claim, is especially problematic when shifting gears, making turns, or driving at low speeds, according to TopClassActions.com.

“Plaintiffs’ claims arise out of BMW’s failure to disclose and/or fraudulent concealment of the Transfer Case Defect and the issues it causes, and its representations about the world-class quality of the Class Vehicles,” the class action lawsuit reads. 

Lawsuit claims BMW knowingly sold several different models with the defect

The lawsuit claims the transfer case defect affects numerous BMW models. The models in question range from 2019 to 2025, and include X3, X4, X5, X6, X7, 3 Series, 4 Series, 5 Series, 7 Series, and 8 Series vehicles.

The plaintiffs claim that, based on BMW’s own design and testing data, consumer complaints, and service bulletins, the company has known about this defect since at least 2018. Also, a service bulletin issued in 2020 acknowledged the issue, but failed to resolve the defect. As a result, they had to pay out of pocket for repairs that should have been covered under warranty.

The lawsuit accuses BMW of breach of warranty, fraud, unjust enrichment, and violating consumer protection laws. The plaintiffs are seeking a jury trial. They are also seeking injunctive and declaratory relief, as well as compensatory, exemplary, statutory, and punitive damages.