Subaru/courtesy photo

Lawyers in a putative, nationwide class action against Subaru are seeking approval of a settlement that they say will provide car owners and lessees with benefits valued at more than $6.25 million in litigation over the automaker's allegedly defective Starlink infotainment system.

The 113-page motion for preliminary approval was submitted on Aug. 30 by counsel for the plaintiffs in the case, who would be paid $1.5 million in fees and costs if the settlement is approved.

The case involves the 2018 Subaru Outback, 2018 Subaru Forester, 2018 Subaru Legacy, 2018 Subaru Crosstrek, 2017-2018 Subaru Imprezas, and 2018 Subaru BRZ.

Under terms of the settlement, owners and lessees of those vehicles could be compensated based on multiple visits to a Subaru dealer for a Starlink repair or complaint ($150 for two visits, $300 for three or more visits—or, at the class member's election, vouchers that can be used for Subaru service, apparel, or a new vehicle).

It also provides for compensation at the rate of $16 per day during the period of time when Starlink replacement head units were on back order. About 9,590 class members fall into this category, according to the documents, which estimate the value of that component of the settlement at $2.08 million.

Also, class members who incurred expenses not covered by a voluntary Starlink recall could be refunded up to $90 for costs of alternative transportation.

Subaru continues to issue software updates to address ongoing product development, and agreed to extend the warranty applicable to the Starlink system from three years/36,000 miles to five years/100,000 miles, the documents said.

In addition, Subaru has agreed to pay reasonable attorney fees and litigation expenses in the amount of $1.5 million, and incentive awards to each of the seven class representatives of $3,500.

"We're pleased with the settlement," said Benjamin Johns of Chimicles Schwartz Kriner and Donaldson-Smith in Haverford, Pennsylvania, one of the attorneys for the plaintiffs. "We think it's a very good result for the class, and we look forward to seeking the court's approval."

Johns worked with Andrew Ferich of the same firm, Kevin Roddy of Wilentz, Goldman & Spitzer in Woodbridge, and Daniel Lapinski of Motley Rice in Cherry Hill.

Subaru's attorney, Neal Walters of Ballard Spahr's Cherry Hill office, could not be immediately reached for comment.

Johns said if the motion is granted, it will trigger notice to go to the class, and class members will have a chance to respond to the settlement and submit claims. A final settlement hearing would be held afterward, and the judge would determine whether to grant final approval for the settlement.

Reaching the settlement included two mediation sessions on May 6 and 14 with retired Judge Dennis Cavanaugh, counsel at McElroy, Deutsch, Mulvaney & Carpenter, according to the court filing.

The case was initiated by consumers who purchased or leased one of the class vehicles equipped with the Subaru Starlink system, which consists of a touchscreen multimedia interface in the front-center console. Starlink is designed to provide the display for the backup camera, as well as an interface for making telephone calls, using the GPS navigation system, and accessing radio controls.

The suit claimed numerous malfunctions, including that the backup camera freezes or shuts down; audio and radio functions fail; the display shuts off even though functions of the infotainment system remain working; and the radio will not shut off or turn down when backing up. Malfunctions with navigation and Bluetooth calls also were alleged.

Subaru denied the allegations, and didn't admit fault in the settlement agreement.

The suit originally was filed in Camden County Superior Court in November 2018, and it was removed to U.S. District Court for the District of New Jersey the next month.

Subaru previously moved to dismiss and sought to stay all discovery, but U.S. Magistrate Judge Joel Schneider last March denied Subaru's motion to stay full discovery.

"Defendants' concern about 'extremely expensive' discovery is overblown," Schneider said at the time. "As is always the case, the court expects to closely manage discovery to assure that plaintiffs' efforts are proportional. Further, contrary to defendants' argument, a discovery stay will not simplify the issues for trial. In fact, the opposite is true."

Schneider, referencing Chalames v. OKI Data Americas, a U.S. District Court of New Jersey decision from 2007, said, "the mere filing of a motion to dismiss does not stay discovery."

Subaru is a Japanese corporation. Subaru of America was founded in 1968 in Bala Cynwyd, Pennsylvania, and the following year moved to Pennsauken. The company's headquarters were located in Cherry Hill from 1986 until 2018, when they moved to the Camden waterfront after the city offered an incentive package that included a $118 million tax break.