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. Donna says:

    10k for a blown engine and my forester doesn’t seem to be included in the eligible VIN numbers. Really?

    1. Kevin Cook says:

      Yes. Really. The settlement provides peanuts for many owners, and nothing for owners who got their engines repaired but not at a Subaru dealer. Meanwhile the lawyers who represent the class get a half a million each.

  2. Susan S. says:

    I just received the notice in the mail. My 2011 Forester uses a lot of oil. But otherwise a great car. One bad thing is that this low-end model, this particular year, does not have a low-oil light. I noticed a tapping noise one day, and took it right in for an oil change AT A SUBARU DEALER, about three weeks ago. I asked about WHY this car does not have a light that indicates low oil, and told them that the car uses too much oil. Gas mileage is not as great when the oil is low, so I know when my oil level needs a boost. The maintenance supervisor mentions NOTHING about my comments on oil usage. But I notice they scheduled me for an oil change in 4 months at 4,500 miles, instead of the usual 6 months or 7500 miles. I think all owners will be getting a notice with the affected cars, VIN numbers etc.

  3. eric iorgov says:

    2015 SUBARU Forester XT Premium , have oil problem . Recent recall for preignition problem , too vehicle for service , leak down test indicated 14 % average blow by , highest 16% , lowest 12% , engine has only 13,000 miles . Noticed last 2 oil changes Subaru over filled with oil . Cost more to drive with this defective engine , and Subaru neglected to inform me at the time of purchase of my vehicle of this defect in their engines …

  4. Lynn Goldmann says:

    My daughters 2010 subaru wrx started burning a quart of oil a day. We brought the car to subaru and they are doing an oil consumption test, which she had to pay for even though she has an extended bumper to bumper warranty! If there is a class action lawsuit anyone knows about, please let me know. I would like to be get involved in the lawsuit.

  5. Dave says:

    Does anyone know how I can pursue reimbursement for the six quarts of oil mentioned in the article? My car was affected by this issue. It was repaired under warranty by Subaru without too much hassle, but I did need to frequently purchase additional oil on my own while waiting for it to be resolved. I have no record of purchasing said oil, those receipts were thrown out long ago.

  6. Chris DiCroce says:

    Michael, I hear you!! I also have a 2010 that the engine blew. If you know how to get involved in this lawsuit, or what we should do, please let me know.

    1. gina says:

      Also having engine trouble with my 2010 Forester, due to oil consumption. was wondering if you guys had been able to get any assistance with getting reimbursement or replacement parts due to this settlement.

  7. Brendan says:

    How can I sign up for this class action? Is it only for those that bought new, or is used also included?

  8. Robert says:

    According to dealer and consumer reports submitted to the National Highway Traffic Safety Administration, the Subaru oil consumption defect includes the following Subaru car year and models that are also named in the class action lawsuit: 2011-14 Subaru Forester 2.5L, 2013 Legacy 2.5L, 2013 Outback 2.5L, 2012-13 Impreza 2.0L and 2013 XV Crosstek 2.0L vehicles

    1. Mervin Baldoz says:

      So will my 2011 Wrx sti be accountable for this lawsuit? Because my car just did this and I haven’t started on the repairs for it either plz help!

  9. Juan says:

    No subaru owners from PuertoRico can be included in this class? My 2013 forester consumes a lot of oil too..

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