Shop-Vac, Lowe’s Settle Class Action with Extended Warranty

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A proposed settlement has been reached after years of litigation between Shop-Vac, Lowe’s and a group of plaintiffs who allege the companies misrepresent the horsepower rating and canister size measurement of Shop-Vac’s vacuums.

Shop-Vac and Lowe’s agreed to the joint settlement terms after months of mediation presided over by retired Judge Edward A. Infante. Under the settlement, Class Members will be given an extended two-year manufacturer warranty on the motors of certain wet/dry vacuums.

Consumers who purchased a Shop-Vac vacuum anytime after Jan. 1, 2006 and claim they were misled by deceptive advertising of the product, may be eligible under the proposed settlement terms. The extension of the warranties sold by Lowe’s are valued between $6.97 and $29.99, putting the settlement fund of these extended warranties well into the millions of dollars.

Moreover, Shop-Vac agreed to alter the manner in which the vacuums’ peak horsepower and tank size ratings are marketed and labeled so that consumers are able to fully understand the capabilities of the motors and tank capacities. The companies also agreed to pay an amount not to exceed $4.25 million in plaintiffs’ litigation fees and expenses – stating that settlement is “fair, reasonable, and adequate” and “achieves meaningful relief.”

The companies further urged the court to approve the proposed joint settlement terms saying “The parties are fully informed of the merits of the claims and defenses in this action and the settlement … grants relief addressing the alleged deceptive and misleading practices asserted in this litigation, and remediates their effects upon consumers.”

Both the defendants and plaintiffs requested the court to grant the motion for preliminary certification of a nationwide Class in order to notify affected consumers of the settlement agreement and to schedule a final hearing on approval of the terms.

The legal battle between a Class of consumers and Lowe’s and Shop-Vac was carried out over a period of four years as a multidistrict litigation beginning in 2012. Six consumer class action lawsuits were consolidated in Pennsylvania federal court, all similarly alleging that Shop-Vac and Lowe’s “misrepresented or misled consumer as to the ‘peak horsepower’ ratings of the wet/dry vacuums” and falsely advertised that the tanks could hold more than they actually can.

In 2013, a portion of the class action was dismissed by U.S. District Judge Yvette Kane on the grounds that the plaintiffs failed to specify exactly what product they purchased, where they purchased the vacuums, and the specific claims and warranties they were disputing. The plaintiffs filed an amended complaint shortly after with the requested information.

Shop-Vac and Lowe’s sought a full dismissal of all claims in 2014, stating that the Class Members did not suffer actual injury because the vacuums were marketed using “peak” horsepower and not “operational” horsepower, and that canister capacity was based on total volume of the vacuum’s use, which according to court documents, may vary.

However, Judge Kane disagreed and allowed the charges of breach of express warranty and consumer fraud to proceed, concluding that “a reasonable consumer would not understand the term ‘peak horsepower’ to mean horsepower achieved in actual use of the vacuum.”

The plaintiffs are represented by Adam Gonnelli of Faruqi & Faruqi LLP; Robert I. Lax of Lax LLP Sanford P. Dumain, Andrei Rado and Jennifer Czeisler of Milberg LLP and Bruce D. Greenberg of Lite DePalma Greenberg LLP.

The Shop-Vac and Lowe’s False Advertising Class Action Lawsuit is In re: Shop-Vac Marketing and Sales Practices Litigation, Case No. 4:12-md-02380, in the U.S. District Court for the Middle District of Pennsylvania.

UPDATE: The Shop-Vac class action settlement is now open! Click here for more details!