Transmission Failure problems of the 2006 Mercedes Benz M Class

2006 ml350 transmission failure: while exiting from interstate, I notice that the car was jerking/knocking when I was slowing down. A couple of miles on the surface streets at 30-40 mph I noticed that the jerking became worse and finally the car went into neutral gear without any power delivered to the engine. The car stopped on the middle of the road. Later that evening I got it towed to the dealership and was informed that the transmission was blown out and need to be rebuilt or replaced with an ~$8000 bill. The car has 58k miles with all service records and not missing a single service. I am told that this is out of the warranty zone. I found that there is a transmission issue in most of ml3500 for 2006 models. I think that I am being ripped off and the mercedes should fix this via recall.