Plaintiffs v Subaru
Class Action Proceeds Against Subaru Over Defective Odometers
A federal judge has refused to dismiss a potential class action brought by customers who claimed Subaru sold or leased them cars with defective odometers.
Customers claimed that when they began complaining to Subaru that their odometers were overstating mileage, the company allegedly responded falsely that the odometers were accurate within a specified range. The plaintiffs are seeking money damages in the millions and disgorgement of excessive lease fees. They also are asking Subaru to correct or replace the defective devices.
The plaintiffs charged that the defective odometers overstated the mileage on their vehicles and thereby shortened their warranty periods, decreased resale values and, in the case of leased automobiles, penalized drivers for "excessive mileage."
Subaru argued the Odometer Act does not apply to original factory-installed odometers, which were performing consistently with the manner in which they were designed and made to operate.
The customers accused the company of violating three subdivisions of 32703, which state that a person may not:
1. ... use, install, or have installed a device that makes an odometer of a motor vehicle register a mileage different from the mileage the vehicle was driven, as registered by the odometer within the designed tolerance of the manufacturer of the odometer;
2. ... alter ... an odometer of a motor vehicle intending to change the mileage registered by the odometer; [or] ...
4. conspire to violate this section.
Southern District of New York Judge George Daniels turned aside Subaru's argument that the Federal Odometer Act, 49 U.S.C. 32701-32711, does not apply to the plaintiffs' allegations in Vasilas v. Subaru of America, 07 CV 2374.
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