CarShield Class Action Lawsuit

March 21, 2025

CarShield and American Auto Shield Sued in Federal Class Action Alleging Deceptive Practices and Breach of Warranty Contracts

ST. LOUIS, MO – Sauder Schelkopf filed a federal class action lawsuit in the U.S. District Court for the Eastern District of Missouri against NRRM, LLC d/b/a CarShield, LLC and American Auto Shield, LLC. The complaint alleges that the companies engaged in systematic deception and breached their contracts by failing to honor promises made in connection with vehicle service contracts (VSCs) sold under the CarShield brand.

The lawsuit claims that CarShield and its affiliates market themselves as America’s “#1 Auto Protection Company,” offering “comprehensive coverage” and “peace of mind.” However, plaintiffs allege that when it comes time to file a claim, CarShield delays responses, denies valid repairs, refuses to pay posted labor rates, and fails to cover teardown costs—despite contractual obligations stating otherwise.

According to the complaint, consumers are left with out-of-pocket expenses, loss of vehicle use, and thousands of dollars in unreimbursed repair bills after paying monthly premiums for what they believed was dependable coverage.

Consumer Deception at Scale

The lawsuit also references a recent Federal Trade Commission action that resulted in a $10 million settlement with CarShield over similar allegations of deceptive practices, including misleading advertisements and claims denials.

Quote from Lead Counsel Joe Sauder

Joe Sauder of Sauder Schelkopf LLC, one of the law firms representing the plaintiffs, stated:

“Consumers were promised reliable protection for unexpected vehicle repairs. What they got instead was a shell game of denials, delays, and shifting justifications for refusing to pay. This case is about holding CarShield and American Auto Shield accountable for what we allege is a pattern of widespread, unlawful conduct.”

The suit seeks damages for breach of contract, fraudulent concealment, common law fraud, negligent misrepresentation, unjust enrichment, and violations of consumer protection laws. Plaintiffs also seek injunctive relief to stop further harm to consumers nationwide.

Experience Matters

Sauder Schelkopf has a nationally recognized litigation practice. The firm currently serves as court-appointed lead counsel in courts across the country.  The attorneys at Sauder Schelkopf have recovered over $1 billion on behalf of their clients and class members. Our firm was recognized by the Legal Intelligencer’s 2022 Professional Excellence Awards. The Legal Intelligencer’s Professional Excellence Awards honor Pennsylvania law firms and attorneys who have significantly impacted the legal profession. Our firm was named in the Litigation Departments of the Year (Specialty Area category; runner-up), an award that honors the best litigation practice in a small or mid-sized firm in Pennsylvania. This recognition was based on the firm’s 2021 litigation work and its important ongoing cases. LawDragon has recognized our attorneys in its list of the “500 Leading Plaintiff Consumer Lawyers” for 2022. Mr. Schelkopf was named to Pennsylvania’s Best Lawyers® 2022 for Class Actions/Mass Tort Litigation. The American Lawyer named Mr. Sauder to its 2021 Northeast Trailblazers. The honor recognizes 60 lawyers who are “truly agents of change.” It “recognizes professionals in the Northeast who have moved the needle in the legal industry.” The Legal Intelligencer named Mr. Sauder and Mr. Schelkopf in its 2020 Pennsylvania Trailblazers list recognizing 31 lawyers who “have taken extra measures to contribute to positive outcomes . . . and who are truly agents of change.” Our attorneys have also consistently been recognized by their peers being named to Pennsylvania SuperLawyer, a distinction held by the top 5% of attorneys in Pennsylvania.  The National Trial Lawyers Association has also selected our attorneys as the Top 100 Trial Lawyers in Pennsylvania.