Subaru, Drivers Reach Engine Failure Class Action Settlement

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Subaru drivers have asked a federal judge to approve a settlement deal that would end a class action lawsuit alleging that the company knowingly fitted many Subaru cars with defective parts that caused the cars’ engines to fail.

The Subaru class action settlement deal was reached after months of negotiation and mediation between the plaintiffs and the car company, overseen by retired U.S. District Judge Dennis M. Cavanaugh.

The proposed Subaru class action settlement would cover consumers who purchased vehicles manufactured between Oct. 11, 2011 and Nov. 16, 2016, with model years 2012 through 2017 Subaru Impreza WRX and STi vehicles with an EJ-series 2.5-liter turbocharged engine.

Under the Subaru Impreza class action settlement, consumers who purchased the affected vehicles would receive reimbursement for repairs that were out of warranty, but were determined to be required as a result of the faulty parts. They would also receive an extended warranty for eight additional years or 100,00 miles, whichever comes first.

Reportedly, the Subaru engine defect class action settlement would reimburse customers for all out-of-pocket expenses for repairs related to the alleged engine defect that were necessary during the extended warranty.

The Subaru class action settlement covers repairs done by an authorized Subaru dealer, and would compensate consumers who had already sold or traded their vehicles.

Legal counsel for the Class Members expressed approval of the settlement deal, saying that it would provide “significant relief to class members.”

Plaintiffs Vicente Salcedo, Gerald Linden, and Brian Mervin filed the Subaru engine defect class action lawsuit in October 2017.

They claim that cars sold between 2013 and 2015 suffered “catastrophic engine failure” because metal particulates were present in the engine oil lubrication channels and caused the engine to not be sufficiently lubricated. They allege that this occurrence caused the engine bearings to come into contact without lubrication.

The three consumers claim that Subaru knew that the vehicles were subject to the defect, but sold the vehicles nonetheless. They argue that the company did not alert consumers to the defect.

To support their argument that the vehicles possessed a common defect, the consumers noted that many car owners had made complaints about the Subaru vehicles to the National Highway Traffic Safety Administration.

Additionally, Salcedo and the other plaintiffs note that hundreds of vehicle owners have contacted the plaintiffs’ representation about the issue.

Selcedo, Linden, and Mervin argue that Subaru’s failure to notify consumers of the alleged defect violated consumer fraud statutes in California, Michigan, and New Jersey and violated California’s warranty statues.

Additionally, they say that Subaru breached expressed and implied warranty with its consumers, and breached the duty of good faith and fair dealing laid out by the Magnuson-Moss Warranty Act.

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The plaintiffs are represented by Matthew D. Schelkopf, Joseph G. Sauder, and Joseph B. Kenney of Sauder Schelkopf LLC, Bruce D. Greenberg of Lite DePalma Greenberg LLC, Gary S. Graifman and Jay I. Brody of Kantrowitz Goldhamer & Graifman PC, and Thomas P. Sobran of Thomas P. Sobran PC.

The Subaru Engine Defect Class Action Lawsuit is Vicente Salcedo, et al. v. Subaru of America Inc., et al., Case No. 1:17-cv-08173, in the U.S. District Court for the District of New Jersey.

UPDATE: March 2019, the Subaru engine failure class action settlement is now open.Click here to file a claim.