LG Agrees to Blu-Ray Home Theater Class Action Settlement

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UPDATE: Details on how to file a claim for the LG Blu-Ray Home Theater Class Action Settlement are now up!

LG Electronics Inc. has agreed to a class action lawsuit settlement over claims the company concealed a defect in its Blu-ray home theater systems.

Plaintiffs Bret Koertge and Jay Fenster filed the LG Blu-ray class action lawsuit in October 2012, alleging that the company failed to disclose that it sold, marketed or distributed the LG LHB975 Network Blu-ray Disc Home Theater System that contained a defect causing a connectivity issue between the speakers and the main unit. They allege that this defect made the whole system inoperable. They also claim that LG failed to replace the defective product within the warranty period.

Under the terms of the proposed class action settlement, LG agrees to extend the warranty to a total of five years from the date of purchase. No monetary terms were specified in the agreement, which was filed in the U.S. District Court for the District of New Jersey on July 26.

The estimated 11,500 members of the LG Blu-ray class action settlement will be eligible for repayment for the cost of past and future repairs. According to the plaintiffs, the cost of repairing the defect often cost as much as $500 more than the initial cost of the LG Home Theater System.

According to the LG Blu-ray class action lawsuit, LG released the LG LHB975 home theater system in March 2010, claiming that the system was the “ultimate home theater experience” and the “best HD has to offer.” The system includes wireless speakers and a wireless subwoofer that could operate with any Wi-Fi connection within range. Because of this serious defect, consumers spent additional money to either attempt to repair the system or purchase a different home theater system.

The plaintiffs in the class action lawsuit allegedly either suffered expenses when they attempted to repair the home theater system or spent money to replace the defective LG home theater system.

The plaintiffs asserted claims under the New Jersey Consumer Fraud Act and the Nevada Deceptive Trade Practices Act. They also include claims for breach of express and implied warranty under Nevada, New Jersey and Tennessee law.

LG agreed to the terms of the class action settlement after the parties underwent mediation led by Judge Orlofsky.

If the LG Blu-ray home theater class action settlement is approved, Class Members will receive notification of how to file a claim by direct mail and email, according to the contact information LG has in its database. The parties to the class action settlement believe that these methods of communication will be able to directly reach at least 39 percent of the eligible Class Members. The administrator will also publish a notice in “USA Today” and create a website related to the class action settlement. Because anyone who has purchased the LHB975 Network Blu-Ray Disc Home Theater System will automatically receive the extended warranty, there is no need for Class Members to take any action to be eligible for this benefit. They will, however, have to submit a claim to receive reimbursement for repair costs.

Top Class Actions will update our readers as soon as claim filing instructions are made available. Sign up for our free weekly newsletter below to receive updates directly to your inbox. [Update: Detailed claim filing instructions can be found here.]

The Blu-Ray Home Theater System Defect Class Action Lawsuit is Bret Koertge et al. v. LG Electronics USA Inc., Case No. 2:12-cv-06204, in the U.S. District Court for the District of New Jersey.

The plaintiffs are represented by James C. Shah and Natalie Finkelman Bennett of Shepherd Finkelman Miller & Shah LLP.