Subaru Buyers' Attys Get $7.25M As Windshield Deal OK'd

By Rae Ann Varona

Law360 (April 22, 2025, 4:44 PM EDT) -- A New Jersey federal judge on Monday gave final approval to a settlement between Subaru and a class of nearly 2 million customers in a suit that accused the automaker of selling vehicles with windshields vulnerable to cracks and other breakage, and granted class counsel $7.25 million in attorney fees. U.S. District Judge Christine P. O'Hearn's final approval of the settlement closes litigation lodged more than five years ago against Subaru of America Inc. over windshields placed on several of its vehicle models, including its Forester and Outback SUVs. Judge O'Hearn wrote in a final judgment and order that the deal is "in all respects, fair, reasonable, and adequate" and in the "best interests" of the settlement class.

In a separate order, Judge O'Hearn also gave a nod to $7.25 million in attorney fees to the settlement class's three attorneys. She said that the award to class counsel Peter A. Muhic of Muhic Law LLC, Russell D. Paul of Berger Montague PC, and Edwin J. Kilpela Jr. of Wade Kilpela Slade LLP is "fair and reasonable and, in a matter of this level of complexity, consistent with the range of attorneys' fees awarded in this district and in the Third Circuit Court of Appeals."

Expenses reported to the court were also "necessary, reasonable, and proper," she wrote. New Jersey-based Subaru of America Inc., the U.S. arm of Japanese conglomerate Subaru Corp., was first hit with the suit in October 2019, brought by one driver who alleged that the windshield of her new 2018 Subaru Forester suddenly cracked within just a few months of her purchase. More drivers joined the suit, claiming in a consolidated complaint that they wouldn't have bought their Subaru vehicles, or would have paid less for them, had they known about the faulty glass, which they said also interfered with Subaru's "EyeSight" driver assist system.

According to the latest consolidated complaint filed in December 2020, one plaintiff, Jeffrey Barr, was driving a leased 2019 Subaru Forester on the highway with his wife when its windshield "suddenly and inexplicably cracked" despite there not being any vehicles near them or "any roadway obstructions or anomalies" at the time of the crack. The complaint alleged that another driver, Arnold Milstein, had noticed a crack running through the windshield of his new 2020 Subaru Outback "just weeks" after purchasing it.

Subaru allegedly didn't cover a replacement windshield despite his Outback having fewer than 36,000 miles and being within the warranty period, according to the complaint. The drivers asserted in the complaint that even replacement windows Subaru provided, which the drivers allegedly paid for, suffered from the "same defect" and were thus "equally defective and dangerous."

U.S. Magistrate Judge Matthew J. Skahill gave an initial OK on the settlement in October, citing multiple in-person mediation sessions and substantial discovery, including more than 16,000 pages of documents, written interrogatory responses, subpoenas to third parties, and depositions of the parties' representatives. The settlement, which the parties reached in April 2024, covers 2019 through 2022 models of Subaru's Ascent and Forester vehicles, and 2020 through 2022 models of its Legacy and Outback vehicles.

Under the settlement, Subaru, without admitting liability or wrongdoing, agreed to cover 100% or more of out-of-pocket losses. According to a redacted version of the settlement, the deal allows settlement class members who provide sufficient proof of repair and a photograph of a "qualifying crack" on the windshield before it was repaired to collect 125% of the cost of one prior repair, 150% of the costs if the vehicle required two prior repairs, and 200% of the costs if the vehicle required three or more repairs.

Settlement class members who have proof of repair but don't have photographic proof of a windshield crack may still get monetary recovery through the completion of a photo questionnaire, the settlement states.

Representative plaintiffs Barr, Milstein, Allan Zaback, and Brittany Funk will also receive $5,000 as service awards. Paul of Berger Montague told Law360 on Tuesday that they are "pleased that the court approved the settlement and praised its innovative elements and the excellent recovery achieved for the 1.9 million class members." Counsel for Subaru did not immediately respond to requests for comment on Tuesday.

The class is represented by Peter A. Muhic of Muhic Law LLC, Russell D. Paul of Berger Montague PC, and Edwin J. Kilpela Jr. of Wade Kilpela Slade LLP. Subaru of America Inc. and Subaru Corp. are represented by Neal D. Walters of Ballard Spahr LLP.

The case is Christine Powell et al. v. Subaru of America Inc. et al., case number 1:19-cv-19114, in the U.S. District Court for the District of New Jersey.

--Additional reporting by Gina Kim and George Woolston. Editing by Jay Jackson Jr.

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