Bridging the data gap in automotive class actions

Amanda Sternberg, Director, Client Services:  Automotive defect class actions present unique challenges in settlement administration. Typically, the Original Equipment Manufacturer (OEM) is the named defendant and often lacks comprehensive records for all potential class members.

Because settlement classes usually include both current and former owners and/or lessees, notice must be distributed to a broader audience to reach individuals who possessed the vehicle at the time of the defect, or repair, so they are informed of their rights and options.

OEM data is frequently limited, sometimes providing only Vehicle Identification Numbers (VINs). In some cases, limited contact information is available for original owners or where OEM dealership repair records are current. Epiq has developed strong relationships and extensive experience working with vendors that can help obtain additional necessary contact information for the affected class vehicles. 

Obtaining data from all 50 states and U.S. territories requires careful planning. Each state has its own requirements and timelines for data production. Epiq collaborates closely with the parties to ensure these requirements are met and that settlement documents allow sufficient time to receive DMV data, reconcile it with OEM records, conduct any additional research needed for supplemental contact information, and disseminate notice to all potential class members. All of these steps are critical to successful administration.

Transforming complex data

Rohit Gupta, Lead Developer, Data and Design Services:   After successfully administering a wide range of auto parts class action settlements, Epiq’s Data and Design Services team has developed robust, scalable, and efficient data handling processes specific to these types of cases.

Auto parts cases bring with them a unique blend of complexity, variability, and volume, making them a test of our team’s adaptability and technological capability.

One of the differences with auto parts cases is they rarely begin with a list of class members. Instead, we typically start with an extensive list of Vehicle Identification Numbers (VINs) believed to be part of the class. From there, through specialized data searches, we compile data sets to create the list of class members.

The data we receive arrives in a mix of formats: Excel, CSV, PDFs, APIs, etc. To make sense of this, we’ve developed processes for standardizing and cleaning this data on scale. This includes address normalization, National Change of Address (NCOA) lookups, and deduplication processes to ensure reliable data. The goal is to transform messy, disparate data into a clean, accurate, and mailable data set.

On the back end, we’ve built a dynamic calculation engine that recalculates claim-level damages in real time, whenever there's a change in underlying data. Whether it's an updated ownership period or a corrected VIN match, our system adapts instantly. And because many auto parts cases involve multiple parts with different allocation rules, our platform can apply complex formulas for each claim automatically, ensuring consistency across all claims.

Our focus on accuracy, scalability, and innovation helps us stand out in managing auto parts class actions and delivering top-quality results for each case.

Navigating cash and non-cash remedies in automotive class actions                        

Jacob Putnam-Smart, Complex Claims Manager, Claims:  Auto-related matters involving product liability, antitrust, or remediation often provide a range of remedies. Cash payments are the most common, typically distributed as pro rata residual payments or as reimbursements for individual out-of-pocket expenses. The out-of-pocket expenses may include costs related to towing, car rentals, repairs, lost wages, storage, and childcare.

Beyond reimbursement, cash payments may also cover diminished vehicle value resulting from a sale or trade related to the underlying issue with the vehicle, as well as compensation for inconvenience, such as delays in repairs.

Some auto-related matters will offer incentives to encourage repairs. For instance, the affected group may receive unfunded gift cards that are activated only after a qualifying repair has been completed.

In addition to monetary compensation, non-cash remedies are also common. These can include warranty extensions, free inspections, free future repairs or replacements, or informational materials that guide consumers on maintenance and available services.

The appropriateness of a selected remedy often depends on the affected group. For example, the involvement of third-party filers or fleet management companies can directly influence the effectiveness of a cash versus non-cash remedy. 

The varied remedy options available for automotive matters underscores the importance of thoughtful selection to ensure the best resolution.

Partnering with special masters to navigate complex automotive settlements

Stephen Donaldson, Program Director, Client Services:   When an automotive defect class action settlement provides a monetary relief component, it is common to require class members to submit claim forms to obtain that relief. 

These forms can be complicated depending on the nature of the defect. They often require the claimants to include documented evidence of their defect or preventative repair to receive reimbursement of the out-of-pocket expenses they incurred.

While Epiq has extensive experience reviewing automotive claims, it is also common for the court to appoint a special master to adjudicate the claims due to their existing involvement in mediating the case.

In these situations, Epiq typically partners with the special master as an independent third party. Epiq intakes and manages the claims data and documentation, checking for surface defects, and then provides the claims to the special master for review.

Once the special master completes their work, Epiq then communicates the claim decisions back to the claimants, whether that is through noticing efforts or the distribution of funds.

Epiq is also experienced in handling additional correspondence with claimants whose claims are initially determined to be deficient. Epiq provides robust guidance to claimants about any opportunity they have to provide additional documentation or explanations to further support their claim. Epiq has contact center resources available to take phone calls and handle emails from claimants, providing an efficient means of communication with the claimants while the special master focuses on the claim review.