A new class action lawsuit has been filed against a major automotive company, alleging widespread defects in their vehicles’ transfer cases that lead to significant safety concerns and financial burdens for owners. The complaint was lodged by Joseph Sangenito, Zhargal Dampilon, Richard Grad, and Kevin Finley on November 24, 2025, in the United States District Court for the District of New Jersey against BMW of North America, LLC and Bayerische Motoren Werke AG.
The plaintiffs claim that BMW sold vehicles with defective transfer cases across various models from 2019 to 2025. These defects allegedly cause the vehicles to experience jerking or shuddering sensations during normal driving conditions such as shifting gears or making turns. The plaintiffs argue that this defect significantly affects the drivability of the vehicles and leads to premature failure of the transfer cases. Despite being aware of these issues since at least 2018, BMW is accused of failing to address them adequately or inform customers about potential risks.
According to the lawsuit, when vehicle owners report these issues, they are often required to replace the transfer case fluid at their own expense—costs ranging from $250 to $1,300—before BMW considers replacing the defective transfer case itself. Even after such costly repairs, many customers continue to experience problems. The plaintiffs allege that BMW’s actions violate consumer protection laws by selling vehicles with known defects and not providing adequate remedies.
The plaintiffs seek various forms of relief from the court including actual damages for financial losses incurred due to repair costs and diminished vehicle value; statutory damages; exemplary and punitive damages; declaratory and injunctive relief; pre- and post-judgment interest; as well as attorneys’ fees and costs. They argue that BMW’s failure to disclose these defects amounts to fraudulent concealment which has caused significant harm to consumers who purchased or leased these vehicles under false pretenses.
Representing the plaintiffs are attorneys whose names were not disclosed in the document. The case is presided over by a judge whose name is also not mentioned. The Case ID for this filing is 2:25-cv-17858.
Source: 225cv17858_Sengenito_v_BMW_of_North_America_LLC_Complaint_District_New_Jersey.pdf
