Subaru Owners May Be ‘Getting a Really Bad Deal’ by Taking Class Action Lawsuit Settlement

But Action News Investigates has found one case in which consumers joining a class action case could actually hurt themselves.

Matthew Mitchell started having problems with his Subaru Crosstrek just months after he bought it.

The oil and check engine lights were coming on constantly. Mechanics told him his new car was using more oil than it should.

“The problem was supposed to be fixed several times and just persisted,” Mitchell said.

Mitchell says in two years, he made more than 30 trips to the dealer.

“I like the car. I just don’t like the headache,” he said.

He has plenty of company. The 2013 Crosstrek is one of several Subaru models that have had chronic oil consumption problems, according to a class action lawsuit filed against Subaru.

The case affects 665,730 Subaru owners who own Crosstrek, Forester, Legacy, Outback and Impreza models from 2011 to 2015.

A pending settlement would give owners of those vehicles an extended warranty for any oil-related problem.

But Mitchell took himself out of the class action case. Instead, he filed a lemon law complaint. His attorney was Robert Silverman, who’s no fan of the class action case.

“These consumers are really getting a bad deal,” Silverman said.

He said the class action case will not compensate consumers for the loss of value in their car that comes from frequent repairs.

That includes Mitchell, who had to have his engine rebuilt twice.

“All they’re getting is the repair covered. What happens when they want to sell their car and they get thousands of dollars less?” Silverman said.

Even though the class action settlement has not been finalized, Subaru is already offering its customers with oil problems the same extended warranty that is covered by the settlement.

“We believe that this proposed resolution affirms Subaru of America’s reputation for standing behind its products and taking care of its customers,” said company spokesman Michael McHale.

Mitchell settled his lemon law case with Subaru. He and his attorney declined to give details of the settlement, but Mitchell said he got a better deal than he would have under the class action case.

One of the Subaru class action plaintiff attorneys, Matthew Schelkopf, said the settlement should satisfy most Subaru customers but he can understand why some lemon law attorneys are upset.

“In this case, I filed one case and provided relief to potentially 665,000 individuals. So that’s a lot of business for lemon law attorneys that could have been swept up in that case,” Schelkopf said.

Silverman responded, “There’s lots of class actions being filed all the time. Some are really good. Some get great results. But this one is really bad. This one bothers me more than any over 26 years.”

Regardless of how car owners make out in the class action case, there is no question it will be lucrative for the plaintiff lawyers. They stand to collect $1.5 million in fees if the settlement is approved.

Schelkopf acknowledged the class action settlement may not work for some people who think they deserve more than an extended warranty.

“And those are the individuals that, if they want to opt out they can certainly opt out, and it might make sense for them to do so,” he said.

One of them is Scott Bates, of Jeannette, who settled a lemon law case with Subaru.

Before his Impreza had 7,000 miles on it, he had to have his engine rebuilt twice.

When he saw the oil light weeks after the engine was rebuilt the first time, Bates said, “I wasn’t pleased to say the least. It wasn’t a reliable car.”

Subaru owners who are part of this class action case have until June 13 to decide if they want to opt out. If they do nothing they will automatically be part of the settlement. That will prevent them from filing a lemon law complaint. The settlement is expected to be finalized in July.

Statement from Subaru spokesman Michael McHale:

“Subaru of America, Inc. (SOA) and counsel for plaintiffs have agreed to resolve a claim that alleges certain Forester, Legacy, Outback, Impreza and Crosstrek vehicles may experience oil consumption beyond expectation. Although fewer than 1% of Subaru owners raised this concern, the company has extended the powertrain warranty from 5 years, 60,000 miles to 8 years, 100,000 miles, whichever comes first. Additionally, the company agreed to reimburse owners for certain expenses such as repairs and rental.

“Additionally, if a Subaru owner believes that their vehicle is exhibiting this condition, we recommend that the vehicle is presented to an authorized Subaru retailer for an oil consumption test and if necessary, a repair will be performed at no cost. We believe that this proposed resolution affirms SOA’s reputation for standing behind its products and taking care of its customers.” 

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Source: www.wtae.com www.wtae.com

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