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. Christopher O’Rourke says:

    I am dealing with the same issue as others, 2013 Forester, no warning light came on, took it to mechanic who serviced my vehicle, 1-quart of oil left, no warning lights cam on, called Subaru of America, they said “I have a claim and coverage” local dealership who I purchased car from right off the bat started with the nonsense, can’t work on it, very busy, take it to another dealership, Subaru of America rep states it won’t be covered, it was over extended warranty, which it wasn’t, then they will fix it but after speaking to service rep, oil leak not related to oil consumption issue!!!! Thanks to a Mr. Wolf who refuses to give me any report in writing. I’m a 9/11 first responder who lost a kidney from my service in the recovery efforts who now has nowhere to turn to or no help to get the issue resolved. I will never buy another Subaru again, they should be ashamed of themselves and especially the reps at Subaru of America and the Hassett Subaru of Wantagh who don’t want to help in anyway. This is a disgrace.

  2. Henry Porrata says:

    I have a outback 2015 and it has the oil consumption problem since the beginning. I took it to Subaru dealer more then once and the end result was…”The warranty said to put oil in the car if it short on oil”. So, not only do I put oil but, take for regular oil changes. Unbelievable, I now carry oil with me to make sure my car doesn’t damage and stuck with paying for a lemon. Was hoping to pass the car on to my granddaughter now I can’t. (I have a friend who got his car fix because of the oil consumption, Subaru Crosstrek 2016, I guess because of my age the dealership can get away with not fitting mines and giving me the BS) Hope you can help.

  3. James Tanner says:

    Have a 2014 forester found out about the oil consumption problem the hard way and then the dealer denied it until I printed out paper work showing it. People BEWARE went for a oil consumption test not thinking had the test done and after a few days somthing was nagging me so checked the oil stick and found out that Subaru figured out how much to over fill the oil crankcase so after the set mileage was reached you burned enough oil to the fill mark and guess what you passed so no problem. Even tried to go through Subaru of America and to no avail nothing was done so BEWARE of the wolf in sheep clothing check your oil stick after a test .

    1. Chad says:

      Yeah, I have a 2012 Impreza that I took to the dealership to have tested a couple years ago. Subaru dealership told me I had an oil leak and it would cost me $3500 to repair before they could do the oil consumption test. I told them I have not had a drop on my garage floor. Dirty dealership.

      1. Anna Malatino says:

        Yea, that is NOT OK! I had my consumption test, at no charge, because theu are AWARE of the defect.
        That’s crazy they were asking $3500 PRIOR to the consumption test!!
        DId you take it the the actual Subaru Dealership?

        I would NOT pay that!!!
        good luck!

        1. Jacob says:

          Anna which dealership acknowledged the defect? I have an engine that is now destroyed due to oil consumption because I skipped a few days of checking the oil. I was driving 500 miles a day for a few days. I had added oil prior to my few trips. However, by the time I was headed back from my last trip, the engine was basically gone. I got a quote from Subaru for $18,000 to repair my engine.

    2. Henry says:

      OMG, that happened to us. Took it back more then once they said it passed the oil consumption test but I’m still having the consumption problem and Suburu dealership now washed their hands of fitting it. Told us to check the oil per warranty, ” we have to fill”. Did not think of checking the oil while they did their testing, now it makes sense how it passed on their end but the owner of the car (me) still has the problem. Wow!!! I have a 2015 Outback.

    3. Mariano Lopez says:

      Yes they did this to me too but I caught them so I took my car with a certified mecanic and yes it was overfilled. It’s a scam . I reported it with DMV Imbedtigador I’m just waiting for a interview

    4. Breal says:

      The same happened to me. They taped up the dip stick and I tore it off when I got home to discover it was significantly over filled.

  4. Elizabeth R Jaquith says:

    Anyone know why 3.6 outback was not included? 2011 purchased new. Bought gold warranty to 6yr 100k. Has burned oil since day 1 complained to dealer & SOA. All shrugged. Now 2019 crap storm of all sorts of issues – transmission, valve body replacement, oil valve and a host of other probs. Dealer has now had car for 3 months trying to figure it all out. I’m over the warranty period of course. But it sounds like I’m not alone- can anyone offer advice or suggestions beyond getting rid of it…we cant afford a new or used car…I just want my 8th yes 8th subaru back & running safely. I still love my car but I’m frustrated beyond any emotion at this point.

  5. Steve I. says:

    Girlfriend owns a 2013 Forester. They never informed her about a lawsuit, an issue, or any abnormalities with her car. She bought it certified pre-owned at World Subaru in Tinton Falls NJ, in February, 2014, with 16,000 miles on it for $23,500. She’s always noticed noises coming from the engine and always took it straight to them for repairs/issues. They continually told here that it was HER fault for running the engine low on oil. After moving, she took it to Flemington Subaru in Flemington NJ. Yeah, she was ignorant as to how to maintain a vehicle, BUT THE OIL LIGHT NEVER CAME ON. Even after taking it to them because of an odd engine noise, they told her it was 4 quarts low and that it was her fault. Still, no oil light. Now we are screwed and they want us to replace the engine out of pocket because we, and I quote, “should have known about the issue.” Well, the Subaru technician she always took it to knew about the issues, and never said a thing aside from how it was always her fault for running the engine low on oil. Long story short, we have a 2013 Forester for sale with rod knock. Any buyers? We will cut you the deal of a lifetime. Runs, just needs a new engine or a rebuild. Screw Subaru. I’ve always hated them, and for good reason. This solidified it for me, as if I could have been swayed before. I wish I’d have met her sooner so I could have done something about it. But alas, it’s too late now, and Subaru has their money. They don’t care about consumers or else they wouldn’t have had to be sued to fix their problems. DO NOT BUY SUBARU OR FUJI HEAVY INDUSTRIES. Speak with your money, and you will make a difference. At least Subaru of America offered us $750 towards buying a brand new Subaru. :laughing emoji: No, Subaru. We are done with you. Her mother and both sisters are selling their Subarus as well after seeing what we are going through. Good luck and I wish the best to all others in my situation. I’m 100% certain there are millions out there with defective cars getting blamed that it’s all their fault.

  6. Diane Berman says:

    I have a 2011 Forester with only 55,000 miles on it. It was a certified vehicle with 14k miles on it when I bought it in 2013. The engine blew up from this issue with no oil on Memorial Day. The oil had been checked in March and was fine. I was unaware of this issue or the class action, but was still under mileage for the next oil change. The oil light never went on.Subaru of America just refused my claim. The entire experience of dealing with an agent at their customer service was a miserable experience. I got the same oil consumption test story from them as the gentlemen above, but I was changing the oil often enough that I wouldn’t have noticed a problem. It was clear to me that the decision was made on the value of my vehicle vs. the cost of the engine replacement. I would have done better totaling the car in an auto accident!! My family has owned 7 Subarus and I will never buy another after this horrendous experience.

  7. Cynthia benfield says:

    4th. Subaru, 2013 Forester, oil consumption, out of warranty, have a service contract but if mechanical failure will cover but not wear and tear , don’t know if pistols show wear

  8. Terri says:

    I am just learning about this defect now, after my Crosstrek broke a connecting rod and blew a hole in the engine. My odometer is at 122,000 miles, so they denied my claim. After being asked to provide service records (they were impeccable), they did offer $2,000 toward the repair, but it is conditional and also a 1/3 of what it is going to cost.

    Needless to say, I am disappointed. It would have been good of them to notify me before this happened (never got a notice). I was adding oil, about every 2,500 miles for years. I was told by the dealer, that is what I needed to do. Never did they mention a consumption test.

    Boo Subaru.

  9. Jonathan Husebye says:

    I’m currently dealing with this. I got sick of adding oil to a car with 40k on it. I call and they gave me the run around. Finally while searching the net I found that there’s a suit against them. So I called the dealer back and there tone changed. They did a consumption test and it failed. They agreed to put a NEW motor in it. This morning they called my wife and sold her spark plug!! What So I call them asking why they would do something so stupid as to put old plugs in a new engine. Surprise there swapping head onto a short block and without decking the heads first. Everyone knows how bad Subarus are with head gaskets leaking. Now I got a Subaru with a new short block and a pair of warped heads that are surely gonna leak and crack.

  10. Jon ball says:

    My Forrester blew up I was never notified of lawsuit or problems with the oil guzzling junk I was 4000 miles over class action lawsuit and they refused to help me

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