In the class action, filed in the Federal Court last month, Jaguar Land Rover Australia is accused of misleading consumers by claiming certain models of vehicle were not defective and were safe, reliable, durable and fit for purpose.
Diesel models of Land Rover Discovery, Land Rover Discovery Sport, Range Rover, Range Rover Sport, Range Rover Evoque and Jaguar E-Pace sold between 2016 and 2022 contained key problems which were never rectified by the manufacturer, the lawsuit claims.
"Throughout the relevant period, JLR did not disclose to prospective purchasers or persons acquiring an affected vehicle, or to the public at large, that the vehicle defects were present," the lawsuit claims.
Issues are alleged to have stemmed from the diesel particulate filter, a component designed to reduce emissions created through a vehicle's exhaust.
Particulate matter produced during the combustion process is removed through the DPF system by either high heat or chemical reactions which convert them into carbon dioxide and water vapour.
The class action, which is being run by law firm Gilbert + Tobin, claims the DPF does not function as intended or advertised by JLR.
This has resulted in a range of defects, including the dilution and contamination of engine oil, excess wear and tear on engine parts, increased fuel consumption and engine failure, the lawsuit claims.
Leah Maree and Adam Greentree are representing other vehicle owners in the case.
They say they the $65,000 they paid for their Land Rover Discovery Sport on February 15, 2017, from an authorised JLR dealership in Port Macquarie, NSW, was too high and they would not have purchased the vehicle if they had known about its issues.
As well as a reduction in value, the lawsuit claims the defects meant vehicle owners paid too much GST, stamp duty, luxury car tax as well as financing costs if they took out a loan.
The lawsuit seeks damages, interest and legal costs.
A spokesperson from JLR said the firm was considering the allegations brought against it.
"Our products are of the highest quality and meet all regulations and standards of the markets in which they are purchased, and our highest priority is always to ensure that our customers enjoy the best possible experience with them," they said.
"We are reviewing the statement of claim and will defend in accordance with the applicable court process."
The case is the second class action to be filed in Australia over the diesel filters, with Toyota being hit with a potential $2 billion compensation bill after a class action loss in the Federal Court in April.
In that case, also run by Gilbert + Tobin, Justice Michael Lee found Hilux, Fortuner and Prado vehicles sold to consumers between October 2015 and April 2020 were defective, resulting in a reduction of value of 17.5 per cent on top of excessive GST paid.
More than 264,000 vehicles were sold in Australia with the defective filters, the judge found.
In May, Justice Lee ordered Toyota repay Direct Claim Services, which represented the other car owners in the case, over $18,400 in compensation.
Toyota has filed an appeal of these results. A hearing was held last month with the Full Court reserving its decision.
On Tuesday, law firm Maurice Blackburn announced it was investigating its own class action against Jaguar Land Rover over vehicles equipped with these diesel filters.
"Vehicles are a significant expense for many Australians and consumers have a right under the consumer laws to expect that the vehicle they are purchasing is free from defects, safe, durable and suitable for driving under every day conditions," said Maurice Blackburn Principal Vavaa Mawuli.
"Owners were kept in the dark by Jaguar Land Rover about the problems with these vehicles and we will be seeking to hold Jaguar Land Rover to account for failing their customers."
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