A proposed class-action lawsuit filed in federal court in Virginia alleges Volkswagen Group of America, Audi of America and German parent companies defrauded and endangered consumers.
The suit alleges that companies sold vehicles labeled as Certified Pre-Owned (CPO) that were actually pre-production models that did not comply with U.S. motor vehicle regulations and should never have been placed on American roads.
The lawsuit, filed in U.S. District Court for the Eastern District of Virginia, alleges Volkswagen tried to "defraud consumers by illegally titling, marketing and selling so-called certified pre-owned vehicles to unsuspecting customers who would have never otherwise purchased these cars or who would have paid less for such vehicles had the truth been known."
The lawsuit said Volkswagen "misrepresented the certification, prior use and mileage of these vehicles to induce the fraudulent sale of these CPO cars." The suit said Volkswagen knew that the pre-production cars violated federal safety standards and could not be legally sold in the United States.
The court action accuses Volkswagen of mislabeling pre-production cars as "CARFAX 1-Owner vehicles" that were actually "press vehicles" driven by automotive journalists and corporate pool-fleet cars prior to being resold to consumers.
The legal action was filed on behalf of plaintiffs in New Jersey, Colorado and Washington state by attorney Michael J. Melkersen.