Although the western populations of Pannaria rubiginosa s.l. have recently been revised resulting in the description of a new species, P. oregonensis, no detailed review of the eastern populations has been made since Jørgensen's monograph of North American Pannaria species in 2000. The present study, based on morphological, chemical and molecular data, has uncovered a new species in the east, P. subrubiginosa, characterized by its production of pannarin at least in the medulla, and has revised the descriptive details of P. subfusca, a member of the P. rubiginosa complex that lacks pannarin. Sequences of the ITS region show these species are well separated and well supported, differing also from African, Asian, western North American, European and South American species such as P. andina, P. asahinae, P. malmei, P. oregonensis, P. rubiginella and P. rubiginosa s.str. It appears that that all eastern populations containing pannarin are P. subrubiginosa, and all those lacking pannarin are P. subfusca. Pannaria rubiginosa in the strict sense cannot be confirmed as occurring in North America. A key is provided for the corticolous, non-isidiate, non-sorediate members of the P. rubiginosa group in North America. Keywords: Fuscopannaria, Parmeliella, biogeography, phylogeny, cyanolichen, taxonomy, Appalachians, Maritimes.