Defect is likely present in BMW AWD/4WD models from years 2019 to present, excluding M series models

Lieff Cabraser’s economic injury product defect practice group has filed a federal lawsuit over reports of defects in BMW vehicle transfer cases in BMW All-Wheel Drive and Four-Wheel Drive models from years 2019 to the present (excluding M series vehicles). An Amended Complaint (click to read) was filed on December 26, 2025 in the case.

The transfer case is a component of the drivetrain found in all-wheel drive (AWD) and four-wheel drive (4WD) BMW vehicles to transmit power from the transmission to both the front and rear axles. It essentially acts as an intermediate gearbox, distributing engine power to all four wheels, which provides greater stability and dynamic performance.

Owners and lessees of BMW vehicles are reporting that BMW will not cover transfer case defect repairs under warranty, leading to repair costs that can reach five figures.

If you or a family member have experienced problems with your BMW transfer case, we urge you to reach out to us using the form below to learn about your legal rights and possible recovery. There is no fee or obligation for our review of your case, and the information you provide will help us hold BMW accountable for transfer case defects.