Michael A. Kakuk  |  January 6, 2016

Category: Consumer News

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Subaru class action lawsuitSubaru of America has agreed to settle a class action accusing it of knowingly selling cars that have a defect causing them to burn excessive amounts of oil. Subaru has agreed to extend warranties on affected vehicles, and reimburse vehicle owners for expenses related to the defect.

On Jan. 4, the lead plaintiffs asked the court to approve this preliminary settlement. “This proposed settlement will provide most class members with as much or more compensation as they may have obtained had this case proceeded through certification and trial,” the lead plaintiffs assert.

The original class action lawsuit filed by lead plaintiffs Keith Yeager and Michael Schuler alleged that Subaru knew that certain models of vehicles had defective piston rings that would cause extra oil to burn off the engine. According to the class action lawsuit, Subaru did not tell consumers about the oil burning defect, and that deception caused car owners to spend “considerable money on extra engine oil, but also on engine repairs trying to fix the underlying problem.”

In addition, the class action lawsuit claims that Subaru “improperly denied many warranty repairs, and then, more recently, secretly changed the scope of its warranty coverage without telling affected drivers.” Since the original filing, seven other named plaintiffs have been added to the Subaru class action lawsuit, alleging the same defect in different model vehicles and states.

To settle the oil burning defect class action lawsuit, Subaru has agreed to increase the warranty on vehicles with the defect from the original 5-year / 60,000-mile warranty, to an 8-year / 100,000-mile warranty.

In addition, Subaru has agreed to compensate vehicle owners for the following expenses: “(i) vehicle repairs (including parts and labor); (ii) rental cars; (iii) towing; and (iv) the purchase of up to six quarts of oil per vehicle.” Subaru has agreed to pay 100% of those costs, if claimants can provide reasonable proof of their expenses.

Finally, Subaru has agreed to provide a free “oil consumption test” as well as “TSB repairs” for any owners or leasers of defective vehicles.

The Subaru oil burning defect lawsuit is asking the court to certify a Class of all “current or former owners or lessors of [defective Subaru models] originally purchased or leased in the continental United States and Alaska.” Notice of the settlement will be mailed directly to Class Members, who will have to file claims to receive compensation.

The actual Subaru models that are part of the potential settlement and details on the claim filing process were not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

The plaintiffs are represented by Matthew D. Schelkopf and Jospeh G. Sauder of Chimicles & Tikellis LLP, Eric H. Gibbs, Dylan Hughes, and David Stein of Girard Gibbs LLP, and Richard D. McCune, Jae K. Kim, and Michele M. Vercoski of McCune Wright, LLP.

The Subaru Oil Burning Defect Class Action Lawsuit is Yaeger, et al. v. Subaru of America Inc., et al., Case No. 1:14-cv-04490, in the U.S. District Court for the District of New Jersey.

UPDATE: On Apr. 12, 2016, the Subaru oil burning settlement is now open! Click here to file a Claim Form or visit www.OilConsumption.SettlementClass.com for details.

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69 thoughts onSubaru Settles Oil Burning Class Action Lawsuit

  1. Randy says:

    My car does the same thing I would like to know what all we have to have to enter The Lawsuit

  2. Mariano Lopez says:

    Everything the I hear here it’s truth.yes they overfilled you Engien when they do the oil consumption test . it’s f……… up of there part . But I’m hoping that some one will file a big lawsuit so they don’t do business in USA . I heat all if then . They are nothing but low life scams F…..

  3. Steve says:

    I have a 2013 Outback and got it in for the oil consumption test just before 100,000 mile. The car failed the test and they agreed to fix engine but now Subaru/dealership want me to pay $750 as a deductible because I can’t “prove” that I changed the oil.

  4. Jatana Glann says:

    I too have 2011 Subaru Forester and they said because over 100,000 they will not do ANYTHING. Dealer is telling me needs new $5000 Engine. We have 150,000 miles and have added oil for years and had mechanic also do $700 work on it only to have the exact same thing to happen within months. Subaru Customer Care only offered $1,000 toward a NEW SUBARU, why would I want another Subaru when you won’t fix this one you know there’s a problem with. The dealer told me right now they have the exact 2011 Subaru Forester @ Shop getting an new Engine at customers expense as well.
    This class action lawsuit should have gone past 100,000 miles. My parents has a Hyundai that had 130,000 miles and Hyundai Motor Company handled like a charm. Think I’ll look at Hyundai next time.

    1. RW says:

      I called Subaru headquarters and spoke numerous times with them, me not being too happy. I was out of warranty and ended up paying half the cost of a rebuilt engine. My cost $4000, their cost $4000. Be persistent! They offered $2000 towards a new car, but why would I buy another?
      A year later the condenser went on the A/C. The customer rep at the dealer told me, secretly, that was a problem with many Subarus, not disclosed by Subaru. Luckily my dealer KNOWS me by now and replaced it for nothing. I like my Subaru and will run it to the ground with a new engine and condenser, but won’t buy another! Beware!

      1. Jacob says:

        I’m just wondering if you had to prove to Subaru that you did regular oil changes through the dealer or maybe another place where it’s recorded. I do my own oil change according to manufacturers specs, but just keep my own record. I’ve never had this problem with Toyota. I had a Siena van with 290k miles before I had any engine problems.

  5. Dorothy Kaechele says:

    I have the same problem with my 2011 Forester. My oil consumption test failed and they told me it would cost 5300 and take at least 2 weeks to repair! I asked if there was any warranty and they said no because I have 129000 miles and the warranty went to 100000! What am I suppose to do now? I will never get another Subaru!

    1. RW says:

      Read my comment, above and call Subaru headquarters!

  6. SubaruSucks says:

    2011 forester. Just siezed up no warning or lights. They want 2K
    Just to open the engine and see what is wrong. Now i know….

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