Honda Civic Hybrid Lawsuit Continues

A federal judge in California has rejected the proposed settlement in the lawsuit over Honda Civic Hybrid fuel economy.

Consumer advocates and 26 state attorney generals stepped in and argued the deal was not good for consumers. Most owners covered under the lawsuit would be eligible to receive $1,000 coupon off a new Honda, although the coupon did not cover the most fuel efficient cars such as the Insight, Civic Hybrid, or Fit.

Honda was also offering to send a DVD on how to improve fuel efficiency. Lawyers on the case would have received close to $3 million.

One advocate pointed out most consumers would not use the coupons, Honda would get to sell a few more cars to those who did, while the lawyers get millions.

It's unclear what will happen next. The trial could happen, or perhaps a new settlement would need to be hashed out.

Follow the link to learn all about the Honda Civic Hybrid lawsuit.