Interstate Battery Pro-Rata Warranty Class Action Settlement

If you are an Interstate Batteries’ customer who purchased a battery that was covered by a Previous Interstate Batteries’ Pro-Rata Warranty, a class action settlement may affect your rights.

A class action settlement has been reached in a class action lawsuit against Interstate Battery System of America, Inc. and Interstate Battery System International, Inc. (collectively “Interstate Battery” or “Defendants”) pending in the United States District Court for the Northern District of California(styled Patricia Milano v. Interstate Battery System of America, Inc., , 10-CV-2125-CW), alleging, among other things, that Interstate Battery’s warranty for Interstate Batteries, Nationwide, PowerVolt, and Quickstart brands did not comply with warranty laws and that Interstate Battery breached their warranty and violated consumer protection laws by sometimes miscalculating the price charged for Replacement Batteries, according to the Interstate Battery Pro-Rata Warranty class action settlement notice.

The District Court Judge in the Interstate Battery Pro-Rata Warranty class action lawsuit reportedly decided that everyone who fits this description is a Settlement Class Member, unless otherwise excluded:

All original purchasers of an Interstate Batteries trademarked battery (meaning the Interstate Batteries, Nationwide, PowerVolt, and Quickstart brands) that was covered by a Previous Interstate Batteries’ Pro-Rata Warranty and that was purchased from an Interstate Batteries authorized dealer (but not from an All Battery Center Store), in the United States or the District of Columbia, at any time from April 19, 2000 through April 30, 2012, and who:

(i) later presented that original battery, during the applicable pro-rata-warranty-coverage period, to an Interstate Batteries authorized warranty dealer for a pro-rata-warranty adjustment on the price of a Replacement Battery, and who then purchased that Replacement Battery from that dealer at an adjusted price on a date from May 19, 2006, through April 30, 2012; or
(ii) still had, on or before April 30, 2012, an unexpired contractual right under a Previous Interstate Batteries’ Pro-Rata Warranty to purchase a Replacement Battery in a pro-rata-warranty-adjustment transaction if their original battery fails under the terms of the Previous Interstate Batteries’ Pro-Rata Warranty.

Under the Interstate Battery Pro-Rata Warranty settlement, Interstate Batteries has agreed to make important changes to its warranty practices on the Interstate Batteries brand of automotive batteries currently sold by Interstate Batteries authorized dealers in the United States and the District of Columbia, including:

• Rewriting and using a new form of limited warranty;
• Making the terms, language, and format of this new limited warranty more easily understood by consumers;
• Ensuring the new warranty language is uniform everywhere it is posted;
• Ensuring that any new pro-rata warranty will state clearly how any future pro-rata-warranty-adjustment price would be calculated and that the calculation will be based on Interstate Batteries’ then-current “Suggested Retail Price” for the replacement battery, and not based on Interstate Batteries’ “List Price”;
• Improving the method of delivering this warranty to consumers; and
• Ensuring the new form of limited warranty complies with federal warranty law.

In addition, Interstate Batteries has agreed to provide check cards or product vouchers to eligible Class Members who purchased a Replacement Battery at an adjusted price under the Previous Interstate Batteries’ Pro-Rata Warranty between May 19, 2006, and December 31, 2019, and who timely submit a valid claim form. As part of this settlement, Interstate Batteries reportedly established a two-tier claims program for eligible Class Members who purchased a Replacement Battery under a Previous Interstate Batteries’ Pro-Rata Warranty and are unsatisfied with the way the adjusted price of that Replacement Battery was calculated.  Generally, a qualified Settlement Class Member can submit a claim form without a receipt and receive a $5 product voucher. If you submit a claim form with a receipt, you can choose between a $12 product voucher or an $8.50 check card.

The Court will hold a a final settlement hearing at 2:00 p.m. on June 28, 2012, in Courtroom 2, Oakland Courthouse, United States District Court for the Northern District of California, 1301 Clay Street, Oakland, California 94612 to consider whether the Interstate Batteries Pro-Rata Warranty settlement is fair, reasonable, and adequate.

The complete terms of the Interstate Battery Pro-Rata Warranty settlement are contained in the Amended Settlement Agreement, which appears at www.InterstateBatteriesSettlement.com.

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