In this week’s Suits & Settlements, you’ll find the following reports:
Former Dealership Office Manager Charged in $65,000 Fraud Scheme. A former office manager for Krumland Auto Group is facing 25 felony fraud charges after New Mexico authorities accused her of stealing more than $65,000 from the dealership group by diverting company checks intended for customers and vendors, according to Automotive News and the New Mexico Department of Justice. Prosecutors allege Roshelle Ruffin used unrestricted access to the group's accounting system while employed by the Ford and Nissan dealerships in Roswell, New Mexico, to issue fraudulent checks to herself and several family members between May and December 2023. According to the criminal complaint, some of the proceeds were later transferred back to Ruffin through the Zelle payment service. Investigators allege the scheme included redirecting unissued tax, title and license refund checks that should have gone to customers. Authorities began investigating in 2024 after receiving information from the dealership group's attorney. Ruffin was recently arrested in Texas and is expected to be extradited to New Mexico to face the charges. If convicted on all counts, she could face decades in prison under New Mexico law. New Mexico Attorney General Raul Torrez said the arrest should serve as a warning that the state intends to aggressively prosecute financial fraud. Ruffin's attorney told Automotive News that his client looks forward to continuing the legal process and ensuring the matter is handled fairly and equitably. As with all criminal cases, the allegations remain unproven, and Ruffin is presumed innocent unless and until proven guilty in court.
GM Says Plaintiffs Still Can't Prove Airbag Defect. General Motors has asked a California federal judge to dismiss a proposed class-action lawsuit alleging certain trucks and SUVs contain defective airbag safety software, arguing that after five years of litigation the plaintiffs still have not plausibly identified a defect, according to Law360. The lawsuit claims software controlling the vehicles' airbag systems is defective and could affect occupant protection in certain situations. GM contends the plaintiffs have repeatedly revised their complaint but continue to rely on speculative allegations rather than factual evidence demonstrating a defect exists. In its latest filing, the automaker urged the court to end the case, arguing the plaintiffs have failed to meet the legal standard necessary for the lawsuit to proceed. The plaintiffs maintain the vehicles contain a defect that warrants class-action treatment and are seeking damages and other relief on behalf of affected owners. GM has denied the allegations throughout the litigation. The court has not ruled on the latest motion, which represents another significant procedural step in a case that has been pending for more than five years. The outcome could determine whether the litigation proceeds toward discovery and trial or is dismissed before the merits of the alleged defect are ever considered.
Detroit Diesel Sued Over Alleged Engine Calibration Defect. Detroit Diesel is facing a proposed class-action lawsuit alleging certain trucks equipped with Gen5 DD15 diesel engines contain a defective engine calibration that causes excessive soot buildup and repeated emissions-related problems, according to ClassAction.org. The complaint alleges the calibration defect can trigger frequent regeneration cycles, reduced engine performance, increased maintenance costs and unexpected downtime for commercial truck operators. Plaintiffs contend Detroit Diesel knew or should have known about the alleged defect through testing, warranty claims and customer complaints but failed to disclose the issue or provide an effective repair. The lawsuit seeks damages and other relief on behalf of owners and operators of affected trucks. Detroit Diesel has not publicly responded to the allegations. If certified, the case could become one of the larger commercial-vehicle defect lawsuits filed this year as fleet operators continue challenging emissions-related engine issues.
Tesla Wins Dismissal of Arizona Insurance Class Action. Tesla's insurance division has won dismissal of a proposed class-action lawsuit alleging it underpaid uninsured and underinsured motorist benefits in Arizona, according to Law360. A federal judge dismissed the case without prejudice after determining the court lacked subject-matter jurisdiction, meaning the ruling did not address whether Tesla General Insurance's claims-handling practices complied with Arizona law. The plaintiffs alleged Tesla failed to properly offer uninsured and underinsured motorist coverage and improperly limited benefits following an accident. The court concluded the plaintiffs had not established the jurisdiction necessary for the case to proceed in federal court, allowing them the opportunity to pursue their claims elsewhere if they choose. Tesla has denied wrongdoing. While the dismissal was procedural rather than a decision on the merits, it represents an early legal victory for the insurer and illustrates the importance of jurisdictional requirements in class-action litigation involving auto insurance claims.
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