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BMW settles water damage lawsuit for up to $478M

by Justin King

The class-action lawsuit seeks compensation for 5-Series water damage to electronics in the trunk.

BMW has reached a settlement in a class-action lawsuit over water damage in older 5-Series vehicles

Owners claim the E60-generation sedan is particularly vulnerable to electronic problems due to sensitive components placed in the spare tire well. In some cases, clogged sunroof drain tubes or plenums are said to be responsible for water intrusion.

The lawsuit lists 2004-2010 vehicles, representing around 318,000 vehicles in the US market. Vehicles less than 10 years old with fewer than 120,000 miles will be eligible for free inspection and repairs, while owners of older vehicles can receive reimbursement $1,500 for prior repairs.

suggests the settlement is theoretically worth nearly $478 million if every vehicle qualifies for repairs or reimbursement, but the actual payout will likely be much lower.

The company has also agreed to install warning labels in repaired vehicles to discourage owners from allowing liquids to spill in the trunk.

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