Nissan settles class-action lawsuit claiming faulty brakes

By Jessica Dye

NEW YORK (Reuters) - Nissan North America has agreed to reimburse customers between $20 (12.8 pounds) and $800 each to resolve a lawsuit alleging that defects in certain vehicles caused brakes to fail suddenly, according to court papers.

The settlement agreement, filed on Dec. 5, would affect current or former owners of approximately 350,000 vehicles nationwide. They include Nissan Armadas, Infiniti QX56s or certain Nissan Titans, all model years 2004 to 2008, according to the court papers filed with the U.S. District Court for the Northern District of California.

If approved by U.S. District Judge Phyllis Hamilton, the settlement would resolve a 2011 lawsuit that claimed a problem with an electrical component would cause the brakes to fail without warning.

Plaintiffs had sought reimbursement for monetary losses, including expenses incurred for replacement or repairs. It does not include claims for physical injuries.

Under the agreement, Nissan, the U.S. subsidiary of Japan-based Nissan Motor Co Ltd , would reimburse class members between $20 and $800, depending on a vehicle’s mileage.

The settlement papers did not estimate how much Nissan could pay overall to class members. The company also agreed not to oppose up to $3.45 million in legal fees and expenses for the plaintiffs’ lawyers.

A lawyer for the plaintiffs, Michael Ram, said the suit highlighted an important safety issue, and that "Nissan stepped up to the plate and agreed to a settlement that is going to help their customers." A Nissan spokesman declined to comment.

The case is Banks v. Nissan North America, U.S. District Court for the Northern District of California, No. 11-2022.

(Editing by Jeffrey Benkoe, Alexia Garamfalvi and David Gregorio)