Audi Settles Class Action Engine Sludge Lawsuit

The Volkswagen Group, parent company of Audi, has reached a settlement on a class-action lawsuit claiming 500,000 of their vehicles were prone to engine damage from oil sludge.

Under the agreement, Volkswagen would pay at least 50 percent of the cost of fixing the engines, according to documents filed in United States District Court in Boston. Judge Joseph L. Tauro is scheduled to consider whether to give final approval to the settlement in March.

The Audi vehicles involved in the settlement are the 1997-2004 A4, including the sedan, wagon, and convertible body styles.