Christina Spicer  |  July 30, 2015

Category: Consumer News

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front-loading washer class action lawsuitEarly this week, a settlement agreement in the class action lawsuit accusing BSH Home Appliances Corp. of selling washing machines prone to mold was given final approval by a federal judge.

Lead plaintiffs alleged that BSH Home Appliances Corp. manufactured front-loading washers that were prone to developing mold, biofilm and foul odors. In December of 2014, plaintiffs submitted a motion for preliminary approval of an agreement to settle the moldy washer class action lawsuit.

Early this week, U.S. District Judge David O. Carter overruled objections that the attorneys representing the Class were awarded excessive fees. Judge Carter found that the attorneys’ contention that settlement had a maximum value of $42.25 million “distorts the reality” that BSH only stands to pay about 3 percent of the total Class less than $1.1 million in total; however, the judge also found that the attorneys’ request for $4.2 million in fees, about half their lodestar, in addition to more than $2.3 million in reimbursements, was reasonable. “The court agrees with the contention that the actual payout to the class must be considered in determining reasonable attorney’s fees,” Judge Carter wrote. “However,” he continued, “comparing the requested fee to the actual payout does not necessarily lead to the conclusion that the requested fee is unreasonable.”

In the class action lawsuit, the plaintiffs alleged that BSH’s front-loading washing machines trap a mixture of detergent and wastewater that allows bacteria, mold and fungus to grow because they don’t drain properly. According to court documents, the Class contained potentially nearly 650,000 members, but only about 19,500 filed claims. The attorneys for the class blamed poor mailing lists and records.

Under the terms of the settlement, all U.S. residents who purchased a 27” Bosch Nexxt, Bosch Vision, or Siemens ultraSense front-loading washing machine for personal use are entitled to a $55 payment with proof of ownership.

The judge also pointed out that the class attorneys’ fee is reasonable in light of the risk they faced if they carried the litigation forward. These risks included potentially litigating an appeal by BSH’s in the 9th U.S. Circuit Court of Appeals following an order certifying the plaintiffs’ proposed Class. Additionally, BSH had moved to join the Whirlpool Corp. appeal to the Supreme Court as well as a motion for summary judgment and dismissal.

An attorney for the Class noted that he and the other class attorneys had taken a “considerable reduction” from their lodestar, but they were very pleased that Judge Carter approved the settlement. “As the court noted the case was very hard fought and went on for quite some time; both sides loaded up and fought ferociously over both liability issues and damages,” said the attorney for the Class.

The plaintiffs are represented by Kristen L. Sagafi, Brendan P. Glackin and Nimish R. Desai of Lieff Cabraser Heimann & Bernstein LLP.

The BSH Moldy Washer Class Action Lawsuit is Diana Tait, et al. v. BSH Home Appliances Corp., Case No. 8:10-cv-00711, in the U.S. District Court for the Central District of California.

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2 thoughts onFinal Approval Granted in BSH Moldy Washer Settlement

  1. Betty says:

    Our front loading washing machine is also extremely moldy. Expensive washer, was told that replacing the rubber would require taking the washer apart in order to replace that part. No comments from the manufacturer whether it was covered, no apologies.

  2. Barbara says:

    I have a different washer but it have an odors as well. I was told by the home depot store employee all of the new washers have that odors that’s why customer have to buy other stuff to keep the washer fresh.

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